SEC Approves Options Trading for Spot Bitcoin ETFs, Marking a Major Milestone for the Crypto Industry

This decision comes during a period of strong weekly inflows for Bitcoin ETFs, marking their best performance in around seven months.

The US Securities and Exchange Commission (SEC) has approved a rule change that will allow the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to offer options trading for multiple spot Bitcoin exchange-traded funds (ETFs).

The SEC’s filings on October 18 revealed that both exchanges are authorized to list options for spot ETF products. However, while the NYSE has full approval for all products, the CBOE’s listing excludes Grayscale’s Bitcoin Mini Trust.

“The Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act,76 which requires that an exchange have rules designed to prevent fraudulent and manipulative acts and practices, to remove impediments to and perfect the mechanism of a free and open market, and to protect investors and the public interest,” the SEC stated in the two filings.

The exact launch date for these options has not been confirmed. However, ETF experts expect the approval to broaden access to crypto-related financial products on major US exchanges. This move will likely increase liquidity around Bitcoin ETFs, drawing more participants to the market and ultimately strengthening the industry.

Jeff Park, head of alpha strategies at Bitwise, highlighted the advantages of ETF options over existing BTC options on platforms like Deribit. He pointed out that ETF options offer cross-margining, which enables integration with multiple assets such as GLD.

“Derivatives don’t directly affect the Bitcoin supply but rather allow USD holders to hedge their Bitcoin exposure, which can reduce volatility. ETF options can enable market conditions to significantly influence large assets like BTC.”

“ETF options are the tightropes accelerating flows that convert Bitcoin’s potential energy into kinetic energy, all leading in one direction: higher.”

The SEC’s approval comes at a time when ETFs are experiencing a strong week of inflows. According to data from SoSoValue, Bitcoin ETFs collectively pulled in over $2 billion, extending their winning streak to six consecutive days. As a result, the ETFs have now reached $21 billion in total net inflows, driven by strong investor demand.

“This sustained momentum in ETF inflows is a testament to the robust retail and institutional interest in Bitcoin ETFs. At this rate of inflows, we could see BTC ETFs outpacing Gold ETFs in market size within the next two years,” said Nate Geraci, president of the ETF Store.

The above is the detailed content of SEC Approves Options Trading for Spot Bitcoin ETFs, Marking a Major Milestone for the Crypto Industry. For more information, please follow other related articles on the PHP Chinese website!