The US Securities and Exchange Commission (SEC) has given Nasdaq the green light to list and trade options for BlackRock’s Bitcoin exchange-traded fund (ETF). This development came after SEC approved Bitcoin ETFs to be listed and traded on US exchanges. This decision marks an industry first and could set precedent for further advancements.
The SEC approval, announced on September 20, allows options trading for the iShares Bitcoin Trust which will be traded under the ticker symbol IBIT. According to Nasdaq, it will permit trading for options on the Bitcoin ETF similarly to other ETF options, adhering to the same rules.
In the SEC’s notice, it was mentioned that “Options on IBIT will be physically settled with American-style exercise.” It also detailed that options on IBIT would have to comply with the exchange’s initial and continued listing standards.
It remains uncertain whether the SEC intends to approve the listing and trading of options for other Bitcoin ETFs with other US exchanges. However, Bloomberg ETF analyst Eric Balchunas postulated that additional offerings could be approved quickly.
Balchunas clarified that the SEC approval is just one part of the process. Other regulatory bodies such as the Office of the Comptroller of the Currency and Commodity Futures Trading Commission also need to give their approval before the official listing. Balchunas also highlighted the significant step of the SEC’s agreement.
As of August 5, the trading volume for the IBIT Bitcoin ETF reached over $875 million, with the total for all Bitcoin investment vehicles exceeding $1.3 billion. In addition, Nasdaq has filed a request with the SEC to allow options trading for Ethereum ETFs on the exchange.