Nasdaq, Cboe BTC ETF options have applied to offer trading, get a quick response
On January 19, the United States Securities and Exchange Commission approved Nasdaq and Cboe's proposals to begin trading options on Bitcoin (BTC) exchange-traded funds (ETFs).
Nasdaq has proposed a rule change to list and trade options on BlackRock's iShares Bitcoin Trust. Cboe points to trading options on ETPs. [exchange-traded products] Hold that bitcoin. Cboe has launched six of the ten BTC ETFs approved by the SEC.
The BTC ETF began trading on Nasdaq and Cboe on January 11 after receiving approval from the SEC a day earlier. Cboe executive vice president Kathryn Clay told CNBC on January 18 that the exchange was seeing “good inflow” into BTC ETFs, which continued to track the price of BTC “as expected.”
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Clay describes options as “the next logical step in [BTC] ETFs” she BTC ETF options trading adds utility and risk reduction to the products. Options “enhance price efficiency and hedging strategies,” Nasdaq said in its filing.
Options are a derivative that allows the holder to buy or sell an asset at a predetermined price. Betafie analyst Dave Nadig told CNBC on January 17:
I think you're going to start seeing all kinds of hedge fund players [BTC ETF options] Space. People in the crypto ecosystem who didn't have a direct view of crypto speculation will now have something to play with.
Cboe asked for permission to list the options “last week,” and said, “We're really in the middle of this content design to see what the regulators are going to do with our filings and other exchange filings.” […] It's hard to know if we'll even get approval.”
SEC already acknowledges 19b-4s requiring ability to trade options on #Bitcoin ETFs. This is faster than the SEC normally operates. If the SEC wants to move quickly, options could be approved before the end of February?…
Absolutely early options still ~27+ days left pic.twitter.com/ohbvHgP2uO
— James Seyff (@JSeyff) January 19, 2024
Cboe Options Clearing Corp. had to file similar documents with the SEC and the Commodity Futures Trading Commission, Clay added.
Bloomberg ETF analyst James Seifert commented on the unusual speed of the Nasdaq announcement. Options trading may come before the end of February and finally around September 21.
Proposals will be open for comment for 21 days after they are published in the Federal Register.
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