Key Takeaways
- SEC Approves iShares Bitcoin Trust (IBIT) Options.
- Awaiting OCC & CFTC Approvals.
- NASDAQ also Seeks Approval for Ethereum ETF Options.
SEC Approval
On September 20th, the U.S. Securities and Exchange Commission (SEC) approved options trading on BlackRock’s iShares Bitcoin Trust (IBIT). NASDAQ stated that these options would be traded “in the same manner” as other ETF options, following the same rules. NASDAQ has also filed with the SEC to allow options trading for spot Ethereum ETFs on the exchange.
However, further approvals from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC) are still pending, and the timeline for these approvals is currently unknown. Trading cannot officially commence until these approvals are obtained.
Industry Reactions & Market Impact
The approval has been seen as a “huge win” for Bitcoin ETFs, with Bloomberg Senior ETF Analyst Eric Balchunas predicting that it will attract more institutional investors and liquidity. Analysts expect the options trading to improve risk management, allowing investors to hedge against Bitcoin’s volatility.
In the past week, Bitcoin ETFs saw inflows of $801.1 million, bringing the total net inflows for all 11 US spot Bitcoin ETFs to $17.7 billion. This reflects a recovery from the dip seen in late August to early September.
Market Update Into September 7th: Inflation Data Incoming