The U.S. Securities and Exchange Commission has granted “accelerated approval” for Bitcoin options exchange-traded funds (ETFs) to be listed on the New York Stock Exchange and the Chicago Board Options Exchange.
As of October 18, official filings confirm that the SEC has authorized both the NYSE and CBOE to list and trade options for Bitcoin ETFs.
Options provide investors the ability to buy or sell an asset at a predetermined price before a set date, categorized as “call” or “put” options. This decision is anticipated to create new opportunities for investors aiming to manage risk or take advantage of Bitcoin’s price variability.
In its approval for the NYSE, the SEC indicated that options trading could lead to “better price efficiency” and “less volatility” for the underlying Bitcoin ETFs, potentially stabilizing the entire market.
“Permitting the listing of such options would enhance market transparency and efficiency for these and related products,” the SEC stated.
The approved options trading on the NYSE will encompass 11 ETF providers, including:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree’s Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust
- Bitwise Bitcoin ETF
- BlackRock’s iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Additionally, the SEC has approved options listings for these funds on the CBOE, with the exception of Grayscale’s Bitcoin Mini Trust.
Earlier this year, the SEC also approved Nasdaq’s application to list and trade options for BlackRock’s iShares Bitcoin Trust.
This approval of options for Bitcoin ETFs is viewed as a significant milestone that could enhance liquidity in Bitcoin markets. Market experts have described the development as “game-changing” for the cryptocurrency landscape.
Observers note that Wall Street’s entry into the Bitcoin market is expected to dramatically amplify market activity upon commencement of trading.
In a related update, the SEC has postponed the approval of options trading for spot Ethereum ETFs, which was anticipated by the end of September, extending the review period to mid-November.
