The highly anticipated Bitcoin exchange-traded funds (ETFs) went live on the Nasdaq and Cboe exchanges on January 11, the very next day after they received SEC clearance.
U.S. exchange-traded funds (ETFs) that invest in Bitcoin were given the green light to begin offering options trading on January 19 by the Securities and Exchange Commission (SEC), capping a momentous January indeed.
In order to make it easier to list and trade options related to BlackRock’s iShares Bitcoin Trust, the Nasdaq has started a rule change request, while the Cboe has asked for authorization to trade options related to “ETPs (exchange-traded products) that hold Bitcoin.”
Among the ten Bitcoin exchange-traded funds (ETFs) approved by the SEC, six were recently established by the Cboe.
The BTC ETFs were closely following the price of Bitcoin, as expected, and the exchange was seeing “good inflows” into them, according to Cboe VP Catherine Clay.
Trading in Bitcoin exchange-traded funds (ETFs) was the “next logical step” for these products, according to Clay, as it would increase their value and make them more resistant to risk.
In support of this idea, Nasdaq said that options will bring about “cost efficiencies and increased hedging strategies.”
The right to purchase or sell an asset at a price and time that are both specified is granted to the holder of an option, a financial derivative.
According to VettaFi analyst Dave Nadig, this change might entice a number of hedge funds that haven’t dabbled in bitcoin directly into the Bitcoin ETF options market.
Clay voiced his skepticism about the regulatory clearance procedure, highlighting how tough it was to forecast the result, and Cboe only last week filed its request for options trading authority.
The matter was further complicated since Cboe’s options clearing firm had to file equivalent documents with the SEC and the Commodity Futures Trading Commission.
The unusual quickness with which Nasdaq issued its decision was pointed out by Bloomberg ETF analyst James Seyffart, who speculated that options trading clearance may be given as soon as the end of February or, at the latest, around September 21.
Interested parties and stakeholders have 21 days from the date of publication in the Federal Register to provide their thoughts and opinions on these proposed changes, which might have a significant impact on the cryptocurrency and financial markets.
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