The U.S. Securities and Exchange Commission (SEC) has approved BlackRock’s plan to list and trade options for its spot Bitcoin exchange-traded fund (ETF). This move is significant as BlackRock is the largest asset manager in the world. The options will be available for the iShares Bitcoin Trust, known by its ticker symbol IBIT, and will be traded on the Nasdaq ISE, LLC.
In a filing posted on Friday, the SEC stated it was making this approval on an “accelerated basis.” This means the process is being advanced to allow options trading for BlackRock’s Bitcoin ETF to begin sooner. The SEC also invites public comments on recent amendments related to this approval. This development reflects ongoing interest in cryptocurrency products.
Earlier this year, the SEC approved several spot Bitcoin ETFs from firms like BlackRock, Grayscale, and Fidelity. Other companies, including Grayscale and Bitwise, are also looking to list options for their Bitcoin ETFs. It indicates a growing market for these financial products.
Nate Geraci is the President of ETF Store. He commented on social media, saying, “8+ months after spot Bitcoin ETFs launched…options trading has now been approved. Better late than never.” This highlights the excitement around options trading in the cryptocurrency sector.
BlackRock’s Approval Marks a Milestone for Bitcoin Industry
Eric Balchunas functions as a senior ETF analyst for Bloomberg. He indicated confidence that further approvals will come, attributing it to being a key success for Bitcoin ETFs. According to him, options trading might draw in more liquidity along with more prominent investors, often known as “big fish.”
During a recent conference, SEC official Natasha Vij Greiner pointed out that the word “ETF” is sometimes misleading in its use. According to her, these products are technically known as exchange-traded products (ETPs) and do not qualify under the Investment Company Act of 1940. Such a distinction is important because it reflects different regulatory defenses. This approval will, lastly, be an important moment for BlackRock and the larger cryptocurrency industry.
As excitement for Bitcoin and related investment instruments continues to rise, the SEC’s moves may inspire more firms to exploit opportunities in this field, increasing the allure of Bitcoin investments.
