Bitcoin ETF Options Trading Approved on NYSE and CBOE, Market Expansion Expected

approval of options trading on BlackRock’s Bitcoin ETF (exchange-traded fund) on Nasdaq, it was only a matter of time until the United States Securities and Exchange Commission (SEC) authorized ETF options trading on other exchanges. On Friday, October 18, the commission permitted the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE) to offer options trading for several spot Bitcoin ETFs.

The United States Securities and Exchange Commission (SEC) has approved several applications for exchange-traded fund (ETF) options trading on the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE).

NYSE will be permitted to list and trade options for Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust BTC (BTC), and Bitwise Bitcoin ETF (BITB). Meanwhile, CBOE is now authorized to offer options trading on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).

This development could notably pave the way for growth in the US Bitcoin ETF market by enhancing liquidity, according to a recent report by QCP Capital. The new capacity of exchanges to list and trade options will significantly boost capital inflows into the Bitcoin ETFs, as highlighted by the trading firm.

“With this morning’s approval by the SEC’s approval for BTC ETF options to be listed on the NYSE, we believe this will provide the ETF with the needed liquidity to attract sustainable inflows,” wrote QCP.

ETF options provide investors with the right — but not the obligation — to purchase or sell an ETF at a predetermined price and time. This investment vehicle enables investors to enhance their exposure to an underlying asset while helping to hedge against potential price fluctuations.

The latest approval for Bitcoin ETF options trading arrives at an opportune moment for the crypto products, which have been garnering significant attention from investors in recent weeks. According to data from SoSoValue, US Bitcoin ETFs recorded a total weekly inflow of over $2.13 billion, marking the highest weekly performance since mid-March.

As options trading commences on all the crypto products, the US Bitcoin ETFs are poised to attract new investors, driving higher demand and stronger inflows. With sustainable ETF inflows, investors may witness the price of Bitcoin returning to or exceeding its March levels.

At the time of writing, the price of Bitcoin is hovering around $68,180, indicating a minimal 0.2% decrease in the last 24 hours. However, on the weekly chart, the flagship cryptocurrency's value is up by more than 8%.

According to QCP, the upcoming presidential elections in the US could bolster investor appetite for risk-on assets like Bitcoin. “This will propel risk assets higher and support our Uptober narrative,” the firm added.

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