The US SEC has approved Options trading on BlackRock’s spot Bitcoin ETF product against general expectation
Against general expectations, the United States Securities and Exchange Commission (SEC) has approved the request to trade Options on the BlackRock spot Bitcoin ETF product. The announcement made the rounds late on Friday, showing the market regulator’s new concession toward the digital currency industry.
BlackRock Bitcoin ETF Options – Key Implication
Over the past decade, the US SEC was skeptical of regulated ETF offerings on Bitcoin and other cryptocurrencies. However, the narrative changed when it approved the product for trading earlier this year. With BlackRock Bitcoin ETF, Grayscale Investments and Bitwise among the firms backed to issue the product, the demand for more arose.
INTEL: SEC APPROVES OPTIONS ON BLACKROCK SPOT BITCOIN ETF
NOTICE OF FILING OF AMENDMENT NOS. 4 AND 5 AND ORDER GRANTING ACCELERATED APPROVAL OF A PROPOSED RULE CHANGE, AS MODIFIED BY AMENDMENT NOS. 1, 4, AND 5, TO PERMIT THE LISTING AND TRADING OF OPTIONS ON THE ISHARES BITCOIN…
— Solid Intel 📡 (@solidintel_x) September 20, 2024
Then the quest for Options trading on this products entered the scene. These Options provides a way to hedge against decline in asset, offering a more balanced approach to the new product class. With the BlackRock Options approval, institutional investors will now have more access to gain exposure to the ETF offerings.
Considering the higher risk associated with Options, some prospective issuers have had a rethink for the product over the past few months. With BlackRock now leading the approval trend, it will not come as a surprise if other issuers also receive approvals for their Options products.
Industry Evolving the Right Way
There is a lot of evolution ongoing in the digital currency ecosystem today. Bitcoin, Ethereum and crypto products are now in higher demand in the market by institutional investors. MicroStrategy recently unveiled it purchased more than 7400 BTC earlier today as reported by BGECrypto.
With regulators officially providing products to support indigenous cryptocurrencies, the ecosystem’s evolution may gain more boost.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making decision.
