Traders anticipate that the approval of options for Bitcoin exchange-traded funds will bring essential liquidity to the markets.
Photo by drobotdean on Freepik
On October 18, the U.S. Securities and Exchange Commission (SEC) approved the applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options for the long-awaited spot Bitcoin exchange-traded funds (ETFs).
Options trading will now be accessible for the 11 ETF providers approved on the NYSE, 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's Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, BlackRock's iShares Bitcoin Trust ETF, and the Valkyrie Bitcoin Fund.
Additionally, the Chicago Board Options Exchange submitted an application in August 2024 to list options for the spot Bitcoin ETF providers through a proposed rule change. This regulatory shift places Bitcoin ETF options in the same category as other commodity-based ETFs, which have already been approved by the SEC for listing on the CBOE, with the exception of Grayscale's Bitcoin Mini Trust.