SEC Approves Bitcoin Options ETF by NYSE and CBOE

CoinWorld reports:
The U.S. Securities and Exchange Commission (SEC) is giving the green light to Bitcoin (BTC) options trading exchange-traded funds (ETFs) from two major exchanges in the United States.
In a separate statement, the regulatory agency approves the proposal to list options contracts for ETFs based on BTC from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).
According to the U.S. Securities and Exchange Commission, the approval of options ETFs is due to its recent approval of a rule change proposal by Nasdaq, allowing options to be listed on iShares Bitcoin Trust (IBIT), which has shown positive results.
“The exchanges note that this is a competitive filing, as the Commission recently approved a rule proposal by Nasdaq to permit the listing and trading of options on the iShares Bitcoin Trust, a trust that holds bitcoin. The exchanges state that options on bitcoin funds will allow for hedging, and will allow for increased liquidity, better price efficiency, and lower fund volatility.”
In September, Jeff Park, the head of Bitwise Alpha Strategies, stated that “things could get crazy” after the SEC’s approval of Nasdaq listing options for BlackRock’s IBIT.
Park mentioned that the situation for options ETFs would be “incredibly exciting” as BTC cannot be diluted simply by creating more.
“In summary, the Bitcoin ETF options market is the financial world’s first regulated leverage on a truly supply-constrained, permanent commodity. Things could get crazy. In this case, the regulated market may shut down. But the beauty of Bitcoin is that there will always be a parallel, decentralized market that cannot be shut down, unlike GME (GameStop), which, as you can imagine, GME will pour fuel on the fire. This will be incredibly exciting.”
Don’t miss a beat—
Subscribe
to have email alerts sent directly to your inbox
Check
out
price action
Follow us on
Twitter
,
Facebook
, and
Telegram
Surf
with
HODL Daily Mix