The SEC accepted requests from Cboe and Nasdaq on January 19th to permit options trading on newly authorized Bitcoin ETFs.
While Cboe filed for options on six Bitcoin ETFs it established earlier this month, Nasdaq intends to market options on the iShares Bitcoin Trust.
Options provide additional functionality and risk reduction to Bitcoin ETFs, making them “the next logical step,” according to Cboe executive Catherine Clay. The filings were made not long after the SEC on January 10 authorized the trading of Bitcoin ETFs. Although Cboe’s options proposal was submitted last week, it is still unclear when it will be approved.
The exceptionally short deadline was noted by analyst James Seyffart, who predicted that options trading may be permitted by late February or September 21 at the latest.
In general, experts see Bitcoin ETF options as a logical development that would enable more complex trading techniques. In light of Bitcoin’s price recovery thus far in 2023, there is a growing need for regulated cryptocurrency investment vehicles, as evidenced by their prompt presentation and perhaps quick approval.
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