Spot Bitcoin ETF Options May Begin Trading Tomorrow on Nasdaq

In Brief:

Options on the iShares Bitcoin Trust (IBIT) could start trading on Nasdaq as early as tomorrow, with the U.S. SEC having approved options for spot bitcoin ETFs in September.

The introduction of options trading for spot bitcoin ETFs is anticipated to attract more institutional interest, with other ETFs potentially following suit in the coming days.

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Spot Bitcoin ETF Options Could Start Trading As Early As Tomorrow

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Options on the iShares Bitcoin Trust (IBIT) may soon be available for trading on Nasdaq, potentially starting as early as tomorrow. This development follows the U.S. SEC's approval of options for spot bitcoin ETFs across several exchanges in September, marking a significant milestone for the cryptocurrency market.

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Nasdaq's Launch of IBIT Options

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Alison Hennessy, head of ETP listings at Nasdaq, expressed enthusiasm about the imminent listing and trading of these options, which are expected to generate excitement among investors. Currently, BlackRock's iShares Bitcoin Trust (IBIT) is the only U.S.-based spot bitcoin ETF listed on Nasdaq, making it the first to offer options trading.

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Options, a derivative allowing the purchase or sale of an underlying asset at a predetermined price, offer traders the opportunity to make leveraged bets and hedge positions. This feature is particularly appealing to institutional investors and could potentially increase their participation in the crypto market.

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Regulatory Approvals and Future Prospects

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The SEC's approval of options for IBIT, along with rule changes filed by the NYSE and Cboe Global Markets, paves the way for options trading on other spot bitcoin ETFs in the near future. James Seyffart, ETF analyst at Bloomberg Intelligence, anticipates that options on these ETFs could start trading within the next few days, as all regulatory hurdles have been cleared.

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The introduction of options trading is expected to further attract institutional interest in the crypto market, though its impact on price action remains to be seen. As the market prepares for this new trading opportunity, investors and analysts alike are eager to observe its effects.

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