SEC Authorizes NYSE, CBOE to List Bitcoin Spot ETF Options
The SEC has authorized the NYSE and Cboe to list and trade options related to Bitcoin spot ETFs.
The U.S. Securities and Exchange Commission (SEC) has approved rule changes for the exchanges that will allow the listing and trading of options contracts related to Bitcoin spot ETFs. The goal here is to expand the investment ecosystem around Bitcoin ETFs, which have attracted billions of dollars this year.
ETF News: #SEC approves @NYSE and @CBOE options trading on spot #Bitcoin ETFs following @NasdaqExchange approval.https://t.co/DXU280xoFg pic.twitter.com/DdEDqkt1x7
— MartyParty (@martypartymusic) October 18, 2024
Specifically, the New York Stock Exchange (NYSE) is authorized to list and trade options for the following 11 ETF issuers:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree’s Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust
- Bitwise Bitcoin ETF
- BlackRock’s iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Chicago-based CBOE also received similar approval for the above list, with the sole exception of Grayscale’s Bitcoin Mini Trust.
The move comes just weeks after the SEC approved Nasdaq’s application to list and trade options on BlackRock’s iShares Bitcoin Trust (IBIT).
Options are derivatives that allow the purchase or sale of an underlying asset — in this case, a Bitcoin ETF — at a predetermined price or by a specific date. Many market participants believe that trading options on Bitcoin ETFs will attract large institutional interest in the crypto market and increase overall liquidity.
In approving the NYSE, the SEC found that the rule change is consistent with Section 6(b)(5) of the Act, which requires exchanges to have rules in place to prevent fraud and manipulation and protect the interests of investors and the public.
According to the US Securities and Exchange Commission, options trading is “less volatile” than the underlying Bitcoin ETF, helping to hedge risk, increase liquidity, and improve market transparency and efficiency.
Eric Balchunas, an ETF analyst at Bloomberg, said today’s news was not too surprising.
“The SEC approved the same thing for Nasdaq recently so not a big surprise but still good news as the SEC was a big hurdle.”
They approved the same thing for Nasdaq recently so not a big surprise but still good news as the SEC was big hurdle. We hearing good things about the rest of process altho exact timeline for listing date still unclear. https://t.co/N9squVSXfS
— Eric Balchunas (@EricBalchunas) October 18, 2024
He also said he has heard positive information about the rest of the process, but the official listing date has not been disclosed.
On the other hand, the SEC has delayed its approval of options trading for Ethereum spot ETFs, which was originally scheduled for late September. The review period has been extended to mid-November.
