BlackRock’s spot Bitcoin ETF has received approval from the United States Securities and Exchange Commission (SEC) to allow options trading, marking a milestone in the evolving landscape of cryptocurrency investment products.
The approval permits Nasdaq to list and trade options for the iShares Bitcoin Trust under the ticker symbol IBIT, adding a new dimension to the Bitcoin ETF market that has rapidly grown since its launch in January 2024.
SEC Approves Options for BlackRock’s iShares Bitcoin Trust
The SEC’s decision, announced on September 20, allows options trading for BlackRock’s iShares Bitcoin Trust on Nasdaq. According to the official notice, these options will be traded in the same manner as other ETF options and will follow the same regulatory standards. Options contracts grant investors the right, but not the obligation, to buy or sell the underlying asset at a specified price within a set time frame.
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
The SEC specified that options on IBIT will be physically settled with American-style exercise, meaning they can be exercised at any time before expiration. To meet the listing requirements, the underlying security must be widely held, actively traded, and characterized by a substantial number of outstanding shares. These stipulations align with the SEC’s standards for ensuring a robust and orderly market.
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