NYSE, CBOE set to list Bitcoin ETF options following SEC approval

The U.S. Securities and Exchange Commission (SEC) has granted “accelerated approval” for Bitcoin options exchange-traded funds (ETFs) to be listed on both the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).

According to filings on October 18, the SEC has authorized these exchanges to list and trade options on Bitcoin ETFs, marking a significant step forward for the cryptocurrency market. Options allow investors to buy or sell an asset at a specified price before a set expiration date, providing a new avenue for hedging or speculating on Bitcoin price movements.

This move is expected to bring increased opportunities for risk management and may attract more investors to Bitcoin ETFs. The SEC stated that options trading could improve price efficiency and reduce volatility in the underlying Bitcoin ETFs, contributing to broader market stability.

In the filing, the SEC emphasized that the listing of Bitcoin options would enhance market transparency and efficiency in both Bitcoin ETFs and correlated products.

The SEC’s approval extends to 11 ETF providers for options trading on the NYSE, including well-known names like:

• Fidelity Wise Origin Bitcoin Fund
• ARK21Shares Bitcoin ETF
• Invesco Galaxy Bitcoin ETF
• Franklin Bitcoin ETF
• VanEck Bitcoin Trust
• WisdomTree Bitcoin Fund
• Grayscale Bitcoin Trust
• Grayscale Bitcoin Mini Trust
• Bitwise Bitcoin ETF
• BlackRock iShares Bitcoin Trust ETF
• Valkyrie Bitcoin Fund

Additionally, the SEC has approved options listings for these funds on the CBOE, with the exception of Grayscale’s Bitcoin Mini Trust.

Earlier this year, the SEC had also granted approval to Nasdaq to list and trade options for BlackRock’s iShares Bitcoin Trust, further signaling the growing institutional involvement in the Bitcoin market.

The approval of Bitcoin options ETFs is being seen as a pivotal development for the crypto space, with investors anticipating that it could bring additional liquidity to Bitcoin markets. Jeff Park, head of alpha strategies at Bitwise Investments, called the approval a “game-changer” for the cryptocurrency market. Market observers also believe that the active participation of Wall Street could significantly strengthen Bitcoin markets once trading begins.

Meanwhile, the SEC delayed the approval of options trading for spot Ethereum ETFs, initially expected by the end of September, and has extended the review period to mid-November.