The U.S. Securities and Exchange Commission has granted “accelerated approval” for listing Bitcoin options exchange-traded funds on the New York Stock Exchange and the Chicago Board Options Exchange.
According to Oct. 18 filings, the SEC has greenlighted the NYSE and CBOE to list and trade options for Bitcoin ETFs.
Options give investors the right to buy or sell an asset—referred to as “call” or “put” options—at a specific price before an agreed date. This move is expected to open up new opportunities for investors seeking to manage risk or capitalize on Bitcoin price fluctuations.
In its NYSE approval, the regulator wrote options trading could result in “better price efficiency” and “less volatility” for the underlying Bitcoin ETFs, potentially stabilizing the broader market.
“Permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products,” the filing added.
For NYSE, options trading will be available for 11 ETF providers which include:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree’s Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust
- Bitwise Bitcoin ETF
- BlackRock’s iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Meanwhile, the SEC also approved options listings for these funds on the CBOE with the only exception being Grayscale’s Bitcoin Mini Trust.
Earlier in 2024, the SEC had already approved Nasdaq’s application to list and trade options for BlackRock’s iShares Bitcoin Trust.
Investors see the approval of options for Bitcoin ETFs as a key development that could bring additional liquidity to Bitcoin markets. Jeff Park, Bitwise Invest’s head of alpha strategies, called this development a “game-changing” for cryptocurrency markets.
Other market observers noted that Wall Street’s involvement could significantly boost Bitcoin markets once trading begins. See below.
Meanwhile, the SEC delayed the approval of options trading for spot Ethereum ETFs, initially expected by the end of September, and has extended the review period to mid-November.