Nasdaq and Cboe recently filed applications to offer trading for Bitcoin exchange-traded fund (ETF) options. This move comes on the heels of the approval of Bitcoin ETFs on Nasdaq and Cboe, with trading commencing on January 11, garnering positive attention from the investment community.
Nasdaq’s filing focuses on listing and trading options on BlackRock’s iShares Bitcoin Trust, while Cboe seeks permission to trade options on “ETPs that Hold Bitcoin.”
Both exchanges are optimistic about the potential for Bitcoin ETF options trading, citing utility and risk mitigation benefits. Options, as derivatives, are viewed as the logical next step for Bitcoin ETFs, providing cost efficiencies and increased hedging strategies.
Bloomberg ETF analyst James Seyffart notes the remarkable speed of Nasdaq’s announcement and speculates that options trading approval could arrive before the end of February or around September 21 at the latest. This is an expedited timeline compared to the usual SEC response timeframe.
After adjustments to the rules, the SEC has allowed 21 days for the public to provide comments and feedback. The SEC has given the go-ahead for trading 11 spot Bitcoin exchange-traded funds, leading to the consideration of approving Bitcoin ETF options.
Some of the approvals, including Grayscale Bitcoin Trust, iShares Bitcoin Trust, and the Valkyrie Bitcoin Fund, are anticipated to bring more stability to Bitcoin prices in the long term and potentially reduce liquidity risks, hoping for a growing acceptance of cryptocurrency in traditional financials.
Also Read: Grayscale Urge SEC for Simultaneous Approval of Bitcoin ETFs
