Bitcoin ETFs cost $2 billion among SEC options

On October 18, the US Securities and Exchange Commission (SEC) approved a rule change that would allow the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to offer trading for multi-venue bitcoin exchange-traded funds (ETFs). ).

The decision comes amid strong weekly returns for Bitcoin ETFs, marking their best performance in nearly seven months.

SEC Greenlights Options Trading

SEC filings confirm that both exchanges are authorized to list options for spot ETF products. However, while the NYSE is fully licensed for all products, the CBOE listing does not include Greyscale's Bitcoin Mini Trust.

“The Commission finds that the proposed rule change is consistent with Section 6(b)(5) of the Act. It promotes a free and open market, and protects the interests of investors and the public,” the SEC said in the two filings.

Read more: Introduction to Crypto Options Trading

The exact launch date for these options has not been confirmed. However, ETF experts expect the approval to expand crypto-related financial products on major US exchanges. This move will increase liquidity around Bitcoin ETFs, attract more participants to the market and ultimately strengthen the industry.

Jeff Park, Head of Alpha Strategy at Bitwise, highlighted the advantages of ETF options over BTC options on platforms like Deribit. He pointed out that they offer a cross-platform ETF option that allows for integration with multiple assets, such as GLD.

Park explained that derivatives do not directly affect the supply of Bitcoin but allow US dollar holders to hedge their exposure to Bitcoin, potentially reducing volatility. He also pointed out that ETF options allow market conditions to be heavily influenced by large assets such as BTC.

“ETF options are tightropes that convert Bitcoin's potential energy into kinetic energy that accelerate flows, all pointing in the same direction: higher,” Park concluded.

The SEC approval coincides with an impressive week of earnings from ETFs. Data from SoSoValue shows that Bitcoin ETFs have extended their winning streak to six consecutive days, with a collective withdrawal of more than $2 billion. As a result, driven by strong investor demand, ETFs now reach $21 billion in total net income.

Read more: How to trade Bitcoin ETF: A step-by-step approach

ETF Store President Nate Geraci believes this continued momentum reflects strong retail and institutional interest in Bitcoin ETFs. At this rate, BTC ETFs are predicted to surpass gold ETFs in market size within the next two years.