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.\"

coindesk.com