SEC Approves Bitcoin Options ETFs for NYSE and CBOE, Paving the Way for New Market Dynamics

Oct 21, 2024 - 10:06
Oct 21, 2024 - 10:15
SEC Approves Bitcoin Options ETFs for NYSE and CBOE, Paving the Way for New Market Dynamics

The U.S. Securities and Exchange Commission (SEC) has granted approval for the listing of Bitcoin (BTC) options exchange-traded funds (ETFs) on two major U.S. exchanges, marking a significant step for the cryptocurrency market.

In separate announcements, the SEC confirmed it has authorized the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to introduce options contracts tied to Bitcoin-based ETFs. The approval follows the SEC’s recent decision to greenlight a rule change proposal from Nasdaq, which allowed the listing of options for the iShares Bitcoin Trust (IBIT), a Bitcoin-holding trust, and produced favorable results.

“This is a competitive filing, as the Commission recently approved Nasdaq’s proposal to list and trade options on the iShares Bitcoin Trust,” the SEC noted. The regulatory body highlighted that options on Bitcoin funds would offer hedging opportunities, enhance liquidity, improve price efficiency, and reduce volatility. It also emphasized that listing these options would boost market transparency and efficiency.

In September, Jeff Park, head of alpha strategies at Bitwise, predicted a volatile but transformative period following the SEC’s approval of Nasdaq’s request to list BlackRock’s IBIT options. Park underscored the significance of Bitcoin’s limited supply, stating that “things will likely get wild” as options ETFs emerge.

“For the first time, the financial world will witness regulated leverage on a truly supply-constrained commodity,” Park said. “While regulated markets may face disruptions, Bitcoin’s decentralized nature means there will always be an alternative market that cannot be shut down—unlike GameStop during its trading frenzy. It’s going to be unbelievably fantastic.”