The U.S. Securities and Exchange Commission (SEC) has approved two stock exchanges, the NYSE and CBOE, to list and trade options related to Bitcoin spot ETFs. This decision follows rule changes that now allow these exchanges to offer options contracts on Bitcoin ETFs, aiming to broaden the investment ecosystem surrounding these funds, which have attracted billions of dollars in investments this year.
The New York Stock Exchange (NYSE) has been specifically authorized to list and trade options on 11 Bitcoin ETFs, including:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree’s Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust
- Bitwise Bitcoin ETF
- BlackRock’s iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Similarly, the Chicago Board Options Exchange (CBOE) received approval, with the exception of the Grayscale Bitcoin Mini Trust.
This move comes only weeks after the SEC approved a proposal from Nasdaq to list and trade options on BlackRock’s iShares Bitcoin Trust (IBIT). Options, a type of derivative, give the buyer the right to buy or sell an underlying asset—Bitcoin ETFs in this case—at a predetermined price before or on a specific date. Industry experts believe that trading options on Bitcoin ETFs will attract institutional investors and increase liquidity in the cryptocurrency market.
In its decision for the NYSE, the SEC highlighted that the rule change complies with Section 6(b)(5) of the Securities Exchange Act, requiring exchanges to implement rules to prevent fraud and manipulation while protecting investor and public interests. The SEC also noted that trading options could be less volatile than the underlying Bitcoin ETFs, helping to reduce risk, increase liquidity, and improve overall market transparency and efficiency.
Eric Balchunas, a senior ETF analyst at Bloomberg, mentioned that while the news is not entirely unexpected, it’s still a positive development given the SEC's historically cautious stance. He added that there’s been encouraging feedback regarding the remaining steps in the process, though the official listing date is still pending.
On the flip side, the SEC has delayed its decision on approving options trading for Ethereum spot ETFs, originally scheduled for late September, now postponed until mid-November for further review.
