- The SEC has approved a rule allowing Nasdaq’s International Securities Exchange to list and trade options on BlackRock’s iShares Bitcoin Trust (IBIT), a popular ETF.
- Options trading still requires approval from the Options Clearing and the Commodity Futures Trading Commission.
The U.S. Securities and Exchange Commission (SEC) has approved a new rule that lets Nasdaq’s International Securities Exchange list and trade options on the iShares Bitcoin Trust (IBIT), which is BlackRock’s popular exchange-traded fund.
OPTIONS APPROVED: SEC has just granted accelerated approval for the listing and trading of options on $IBIT. Here's the full approval. h/t @News_Of_Alpha https://t.co/NxcnzvuPmA pic.twitter.com/mtShgrMrwc
— Eric Balchunas (@EricBalchunas) September 20, 2024
Options trading for the iShares fund and other Bitcoin-focused ETFs still needs approval from Options Clearing and the Commodity Futures Trading Commission before it can start. Other exchanges have applied to list options for these ETFs, which could enhance liquidity by attracting larger investors, thanks to the SEC's recent approval.
BlackRock has taken a significant step in broadening its range of Bitcoin derivative products, giving investors more options to manage their exposure to the leading cryptocurrency.
The asset manager has been pursuing approval for this listing since at least March, following the SEC's green light for various Bitcoin-linked ETFs in the U.S.
The SEC's approval comes after Nasdaq ISE submitted several amendments aimed at addressing concerns about market manipulation and excessive risk in the emerging crypto options market.
Edited by Harshajit Sarmah
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