SEC Approves BlackRock’s Spot Bitcoin ETF Options Listing, Reports Reuters

The U.S. Securities and Exchange Commission (SEC) has granted approval for the listing and trading of options related to BlackRock’s spot bitcoin exchange-traded fund (ETF) on Nasdaq.

The SEC announced on Friday that the options trading for BlackRock’s iShares Trust will utilize the ticker symbol “IBIT.” These index options, which are listed derivatives, provide a fast and cost-effective way for traders and institutional investors to enhance their exposure to bitcoin. This development offers an alternative means for these investors to hedge their positions in the leading cryptocurrency.

The approval of options tied to a bitcoin ETF marks a significant advancement for cryptocurrency, which has evolved from being perceived as a nascent asset class. The launch of bitcoin ETFs earlier this year has facilitated greater acceptance of cryptocurrency within mainstream finance.

Options grant holders the right to buy or sell an asset, including stocks or exchange-traded products, at a predetermined price by a specified date.

Following indications that the SEC would approve the underlying ETFs in January, exchanges promptly began applying for options on the spot bitcoin ETF. The SEC, which oversees the necessary rule changes for exchanges to offer these options, has confirmed that its existing surveillance procedures will be applied to IBIT options.