Rapid Progress: Options on Bitcoin ETFs Get the Green Light

The U.S. Securities Exchange Commission has shown itself to be innovative and proactive: A total of eleven exchange-traded funds received quick approval to list and trade options based on Bitcoin spot prices on the New York Stock Exchange. This decision marks another milestone for the world's largest cryptocurrency as well as the entire crypto sector. Already in January, the Securities and Exchange Commission (SEC) approved Bitcoin ETFs to track Bitcoin, thereby taking a significant step for the acceptance of cryptocurrencies. The latest decision now provides institutional investors and traders with the opportunity to use index options as a flexible and cost-efficient tool for hedging their Bitcoin exposure. A variety of renowned funds, including the Fidelity Wise Origin Bitcoin Fund, the ARK21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF, the Grayscale Bitcoin Trust BTC, and the iShares Bitcoin Trust ETF, are among the recipients of the approval, opening the doors for trading these innovative financial instruments. Options offer holders the right to buy or sell specified assets like stocks or exchange-traded products at a predetermined price by a fixed date. Just recently, last month, the regulatory body had already approved the listing and trading of options for the asset manager BlackRock's exchange-traded fund on the Nasdaq.