On October 18, the U.S. Securities and Exchange Commission (
SEC
) took a significant step by approving the listing of options for spot Bitcoin
$
68,302
exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE).
Contents
Expansion of ETF Options Approvals
Advantages for Institutional Investors
Expansion of ETF Options Approvals
This approval follows the SEC’s previous endorsements of funds such as the Fidelity Wise Origin Bitcoin Fund and ARK21Shares Bitcoin ETF. Among the last 11 ETFs approved, BlackRock’s iShares Bitcoin Trust ETF is included. This development is regarded as a major opportunity for institutional traders and investors.
The newly approved options provide investors with more flexible and cost-effective ways to increase their Bitcoin exposure and manage risks. The SEC indicated that these options would enhance liquidity, improve price efficiency, and reduce volatility. Furthermore, the goal is to increase market transparency.
Jeff Park, a manager at Bitwise, expressed that these options would bring liquidity to Bitcoin markets and potentially encourage some investors to buy Bitcoin. “Options can add liquidity to the market and may compel short-position traders to purchase Bitcoin,” he stated.
Advantages for Institutional Investors
Following this approval, Bitcoin’s value has seen a rise. After the news of the approval, the price of Bitcoin increased by 1.29%, reaching $69,125. The CBOE had initially proposed this rule change in August 2024, and the SEC’s approval covers all listed ETFs except for the Grayscale Bitcoin Mini Trust.
In conclusion, the approval of Bitcoin ETF options contributes to the maturation of the
cryptocurrency
market and broader acceptance. It creates more opportunities for institutional investors while introducing new investment tools in the market.
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Disclaimer:
The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
