Options trading on spot bitcoin exchange-traded funds (ETFs) is about to hit the market, potentially as soon as tomorrow, according to Nasdaq. The head of ETP listings at Nasdaq, Alison Hennessy, mentioned in an interview with Bloomberg TV that they are planning to list and trade options on the iShares Bitcoin Trust (IBIT) starting tomorrow. This move is anticipated to generate excitement among investors and attract more institutional interest to the crypto market.
The U.S. Securities and Exchange Commission (SEC) gave the green light for options trading on spot bitcoin ETFs back in September. While there are currently eleven U.S.-based spot bitcoin ETFs available, only IBIT, which is managed by BlackRock, is listed on Nasdaq and therefore eligible for options trading.
Options are a type of derivative that enables investors to buy or sell an underlying asset at a predetermined price within a specified timeframe. This flexibility appeals to traders as it allows them to make leveraged directional bets and hedge their other positions. The approval of options for IBIT by the SEC is a significant milestone for the crypto market.
In addition to IBIT, options for other spot bitcoin ETFs could also become available in the coming days. James Seyffart, an ETF analyst at Bloomberg Intelligence, mentioned that regulatory hurdles have been cleared, and it’s just a matter of finalizing the process before trading begins. This development is expected to further entice institutional investors into the crypto space.
The introduction of options trading could have implications on price action, as leverage and hedging strategies associated with options may impact market dynamics. It remains to be seen how this new trading tool will shape the behavior of investors in the crypto market.
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Helene Braun, a reporter based in New York, specializes in covering Wall Street, spot bitcoin ETFs, and crypto exchanges. She is also a co-host of CoinDesk’s Markets Daily show and holds BTC and ETH. Follow Helene on Twitter (@HeleneBraunn) for more updates on the evolving crypto landscape.
