TheU.S.SecuritiesandExchangeCommission(SEC)approvedstockexchangerulechangesthatpermitthelistingofoptionstiedtospotbitcoinETFs,broadeningtheinvestmentecosystemaroundproductsthat\'vereceivedbillionsofdollarsofinflowsthisyear.
AccordingtotwomemosfromtheSECpublishedFridayafternoon,NYSEwillbeallowedtolistandtradeoptionsontheGrayscaleBitcoinTrust(GBTC),theGrayscaleBitcoinMiniTrust(BTC)andtheBitwiseBitcoinETF(BITB).CboeGlobalMarketsgotapprovaltolistandtradeoptionsontheFidelityWiseOriginBitcoinFund(FBTC)andtheARK21SharesBitcoinETF(ARKB).
TheapprovalcomesseveralweeksaftertheSECapprovedNasdaq\'sruleproposaltoallowthelistingandtradingofoptionsonBlackRock\'siSharesBitcoinTrust(IBIT).
Optionsarederivativesthatallowthepurchaseorsaleofanunderlyingasset–inthiscase,bitcoinETFs–atapredeterminedpriceonorbeforeanagreedupondate.ManymarketparticipantsbelievethatoptionstradingonbitcoinETFswillincreaseinstitutionalinterestincryptoandincreaseoverallliquidity.
InitsNYSEapproval,theSECwrotethatitbelievesoptionsonthebitcoinETFs\"wouldpermithedging,andallowformoreliquidity,betterpriceefficiency,andlessvolatilitywithrespecttotheunderlyingFunds,\"aswellas\"enhancethetransparencyandefficiencyofmarketsintheseandcorrelatedproducts.\"
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