The U.S. Securities and Exchange Commission (SEC) has officially approved the listing and trading of options for BlackRock’s spot bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust, under the ticker symbol “IBIT” on Nasdaq.
This new development allows institutional investors and traders to engage in options trading, which provides a cost-effective way to increase exposure to bitcoin through derivatives linked to a bitcoin index. This approval signifies a significant step toward mainstream acceptance of cryptocurrency, especially following the earlier launch of bitcoin ETFs this year.
Options provide the holder with the right to buy or sell an asset at a predetermined price within a specified timeframe, enabling strategic hedging for market participants. The SEC’s decision comes in response to numerous applications from exchanges eager to offer spot bitcoin ETF options after initial signs of regulatory approval in January.
In its notice, the SEC confirmed that existing surveillance procedures will remain in place for IBIT options, ensuring regulatory oversight of the trading activities.
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