The most recent advancement has enabled option merchants to effortlessly acquire or dispose of IBIT options contracts.
The United States Securities and Exchange Commission (SEC) has taken a significant step by approving the listing of the awaited BlackRock spot Bitcoin Exchange Traded Fund (ETF) iShares Bitcoin Trust (IBIT) options on Nasdaq.
The exchange stated in the report that the options on IBIT would offer investors a risk management and hedging instrument to manage their exposure to the price of Bitcoin and Bitcoin-related products and positions. The report also stated that “Options on IBIT will be physically resolved through an American-style exercise.”
Nasdaq has also stated that options on IBIT will be subject to the Exchange rules and will trade in the same manner as other exchange-traded fund (“ETF”) options.
Furthermore, the Nasdaq also stated that the exchanges require specific listing standards for options on IBIT in order to safeguard investors and maintain a stable trading environment. As stated in the article, “Exchange’s initial listing criteria demand, among other things, that the security underlying a listed option be “characterised by a considerable number of outstanding shares that are widely owned and regularly traded.” This is one of the requirements that must be met.
Also Read: BlackRock emphasizes Bitcoin as a hedge against concerns regarding the U.S. dollar
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