Bitcoin Spot ETF Options to Go Live Tonight
According to Nasdaq, options on Bitcoin spot ETFs could launch as early as tonight.
Alison Hennessy, head of ETP at Nasdaq, said the exchange will list options on a Bitcoin spot ETF as early as today.
She told Bloomberg TV:
“Nasdaq’s goal is to list and trade these options as early as tomorrow. Bringing options to market will be interesting for investors because that’s what we’ve heard from them.”
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Nasdaq Head of ETP Listings Alison Hennessy discusses the iShares Bitcoin Trust ETF (IBIT) and tells @EricBalchunas the intent is to list and trade Bitcoin ETF options "as early as tomorrow" https://t.co/eRBTc8olEf pic.twitter.com/rzvk5qQ3s4
— Bloomberg TV (@BloombergTV) November 18, 2024
The world's largest equity derivatives clearinghouse (OCC) is also preparing to clear these options.
Through the latest announcement, the CFTC confirmed that listing these ETF shares on national stock exchanges is not under the commission's jurisdiction, the OCC will be responsible for clearing and risk management, and is subject to SEC oversight.
Trading volume of 11 Bitcoin ETFs has exceeded $500 billion since they went into operation. Of which, BlackRock's iShares Bitcoin Trust (IBIT) accounts for nearly two-thirds of the market share. The OCC has updated the listing date for the IBIT options to November 19, and they can be traded today.
As for other Bitcoin ETFs, the related options are expected to begin trading in the coming days. James Seyffart, an ETF analyst at Bloomberg Intelligence, argued:
“It’s likely that these options will begin trading this week, maybe in the next day or two. As far as I know, all the regulatory and administrative hurdles have been cleared. The only thing left is to finalize the paperwork.”
"Generally, the listing process after OCC approval is considered relatively quick, often happening within a few days." = get ready
— Eric Balchunas (@EricBalchunas) November 18, 2024
The US Securities and Exchange Commission (SEC) approved options for IBIT in September. The SEC has also approved rule changes filed by the New York Stock Exchange (NYSE) and Cboe Global Markets, which will list several other Bitcoin spot ETFs.
Options are a derivative instrument that allows investors to buy or sell an underlying asset — in this case, IBIT — at a predetermined price over a set period of time. They appeal to investors because of the ability to make leveraged bets and hedge other positions.
Many believe that options could attract more institutions to the crypto market. However, it is also important to consider how the leverage and hedging of options will impact price action
