The US Securities and Exchange Commission (SEC) has given the go-ahead for Bitcoin (BTC) options exchange-traded funds (ETFs) to be listed on two major US exchanges: the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).
SEC Approves NYSE and CBOE Bids
The SEC says it’s approving the applications from NYSE and CBOE to offer options contracts for BTC-based ETFs. The decision comes after the SEC recently approved a similar proposal from Nasdaq to list options on the iShares Bitcoin Trust (IBIT).
The SEC believes that these options ETFs will offer several benefits, including:
- Hedging: Investors can use options to protect themselves from potential losses.
- Liquidity: Options can help to increase the trading volume and liquidity of Bitcoin ETFs.
- Price Efficiency: Options can help to improve the price discovery process for Bitcoin.
- Volatility Reduction: Options can help to reduce the volatility of Bitcoin ETFs.
Experts Expect “Unbelievably Fantastic” Growth
Jeff Park, head of alpha strategies at Bitwise, expects the Bitcoin options ETF market to be a game-changer. He believes that the regulated leverage on Bitcoin, a commodity with a limited supply, will lead to significant growth.
Park also points out that the decentralized nature of Bitcoin means that even if regulated markets shut down, there will always be a parallel market that can’t be stopped.
Overall, the SEC’s approval of Bitcoin options ETFs is seen as a major step forward for the cryptocurrency industry. It’s expected to open up new investment opportunities and further increase the mainstream adoption of Bitcoin.
