As a seasoned financial analyst with over two decades of experience navigating the complex world of finance and technology, I find this recent development by the SEC to be a significant step forward for the cryptocurrency market. The approval of Bitcoin options ETFs on both the NYSE and CBOE opens up new avenues for investors seeking to manage risk or capitalize on price fluctuations in the digital asset class.
The United States Securities and Exchange Commission (SEC) has given its approval for Bitcoin options exchange-traded funds to be quickly listed on the New York Stock Exchange and the Chicago Board Options Exchange, speeding up their availability for trading.
Based on documents filed on October 18th, the Securary and Exchange Commission (SEC) has given approval for both the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE) to offer and trade Bitcoin Exchange-Traded Funds (ETFs).
Investors are granted the chance to acquire or dispose of an asset, known as “call” or “put” options, at a predetermined price by a particular date. This action could provide fresh investment avenues for those aiming to control risk or benefit from changes in Bitcoin’s market value.
Through its NYSE endorsement, the regulatory body indicated that options trading might lead to “enhanced pricing effectiveness” and “reduced volatility” among Bitcoin ETFs. This could help maintain a more stable overall market scenario.
Allowing the inclusion of such alternatives would improve market transparency and operational speed for these and related financial instruments,” the document stated.
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
Additionally, the SEC has given the green light for listing options for these funds on the CBOE, except for Grayscale’s Bitcoin Mini Trust.
2024 saw the Securities and Exchange Commission (SEC) granting approval for Nasdaq to start listing and trading options associated with BlackRock’s Bitcoin Trust in advance.
As a researcher delving into the world of cryptocurrencies, I view the approval of Bitcoin ETF options as a pivotal moment that could significantly boost liquidity within the Bitcoin market. From my perspective, this development, as stated by Jeff Park, head of alpha strategies at Bitwise Invest, is nothing short of revolutionary for the cryptocurrency market.
Market experts have pointed out that when trading starts, the participation of Wall Street could potentially amplify Bitcoin’s market activity by a considerable degree.
This is so much bigger than it sounds
The wall street apes cometh
We’re going to Mars
— EllioTrades (@elliotrades) October 18, 2024
Initially planned for approval by the end of September, the SEC has postponed its decision on allowing options trading for Ethereum ETFs. The new review deadline is now set for mid-November.
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2024-10-19 17:09