SEC Approves Bitcoin ETF Options on NYSE and CBOE
- SEC approval allows NYSE and CBOE to list Bitcoin ETF options, boosting market access.
- Bitcoin ETF options aim to decrease volatility and enhance price efficiency.
- Bitcoin’s value surged 13% last month, aligning with new ETF options trading on the NYSE.
The US Securities and Exchange Commission (SEC) has approved listing Bitcoin options exchange-traded funds on the New York Stock Exchange and Chicago Board Options Exchange , allowing them to trade and list Bitcoin ETF options. Announced in filings on October 18, this decision can be considered a significant step in the cryptocurrency market as it may contribute to market stability and increase the number of available options for investors.
Options related to Bitcoin ETFs allow investors to purchase or sell an asset at a particular price before a given time. This capability also helps manage investors’ risks while taking advantage of fluctuations in Bitcoin price s. Obtaining approval from the SEC will increase Bitcoin prices’ efficiency and reduce the ETFs’ volatility, thus helping stabilize the Bitcoin market.
After the SEC’s approval, options trading will be in a wide range of Bitcoin ETFs on the NYSE managed by Fidelity, ARK21Shares, and BlackRock, among others. This follows the NYSE applying for Bitcoin ETF options in early August and the SEC taking several months to consider the application amid its docket of other measures on crypto-related issues.
This development is well-timed, considering these funds have recently received large net inflows. More than $2.1 billion has been invested in Bitcoin ETFs in the last five trading days. The SEC’s decision enhanced investor access, raising the bar for the growing Bitcoin market.
Read CRYPTONEWSLAND on google newsThe value of Bitcoin has significantly risen, increasing by 13% within the last month and 8% in the previous week. This upward trajectory is likely to endure, mainly as options trading is set to start soon and will result in additional huge stakes being placed on Bitcoin ETFs. Some analysts, including Jeff Park of Bitwise Invest, have already described this as revolutionary for the crypto markets.
At the same time, the SEC has delayed considering options trading for the spot Ethereum ETFs until mid-November. This decision shows that the regulator still maintains high levels of oversight before allowing cryptos into the public market.
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