The U.S. Securities and Exchange Commission (SEC) has granted approval for BlackRock to list and trade options for its iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund (ETF). This approval is seen as a significant move for the evolving Bitcoin ETF market.
Accelerated Approval for Options Trading
The SEC approved BlackRock’s proposal on an “accelerated basis,” allowing Nasdaq ISE, LLC to list and trade options on the iShares Bitcoin Trust. This comes after the SEC approved multiple spot Bitcoin ETFs in January, though the approval for options trading had remained pending until now.
Industry Reactions to the Approval
Industry leaders welcomed the SEC’s decision. ETF Store President Nate Geraci remarked, “Options trading has now been approved…better late than never.” Similarly, Eric Balchunas, senior ETF analyst at Bloomberg, noted that this approval would boost liquidity for Bitcoin ETFs, attracting larger investors and deepening market engagement.
Expanding Bitcoin ETF Offerings
In addition to BlackRock, other major firms like Grayscale and Bitwise are also seeking approval to list and trade options on their spot Bitcoin ETFs. Analysts expect the SEC to approve these applications shortly, further expanding the Bitcoin ETF market.
SEC Clarifies ETF Classification
The SEC has clarified that spot Bitcoin ETFs are classified as exchange-traded products (ETPs), not traditional ETFs under the Investment Company Act of 1940. This distinction impacts the regulatory framework for custody and other protections.
Impact on the Crypto Investment Landscape
This approval is a significant milestone for the Bitcoin ETF market, potentially attracting more institutional interest and boosting liquidity. The SEC’s move is expected to drive further developments in the cryptocurrency investment sector, with more firms likely to follow suit in listing options for their Bitcoin ETFs.