The US Securities and Exchange Commission has given its approval for stock exchange rule changes, enabling the listing of options linked to spot bitcoin exchange-traded funds. This move expands the investment landscape for products that have seen significant inflows this year.
According to SEC memos published on Friday, NYSE has been granted permission to list and trade options on the Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, and Bitwise Bitcoin ETF, while Cboe Global Markets can list and trade options on the Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF. This decision comes on the heels of the SEC's approval of Nasdaq's proposal to list and trade options on BlackRock's iShares Bitcoin Trust. Options, which are derivatives allowing the purchase or sale of an underlying asset at a predetermined price, are expected to boost institutional interest in crypto and increase overall market liquidity. The SEC believes that options on bitcoin ETFs will facilitate hedging, enhance market transparency and efficiency, and reduce volatility.