Options Trading On BlackRock’s Bitcoin ETF Could Come Before February End: Analyst
The United States Securities and Exchange Commission (SEC) has opened a comment period on Nasdaq’s proposal to allow options trading on BlackRock’s Bitcoin spot ETF. The SEC acknowledged the proposal on January 19 and asked for public comments over a 21-day period. Nasdaq’s application is for options trading on BlackRock’s iShares Bitcoin Trust (IBIT).
Options are derivatives that give holders the right to buy or sell an underlying asset at a predetermined price and time. They can be traded between individuals or on public exchanges as standardized contracts.
Nasdaq is not the only exchange with a proposal for options trading on a Bitcoin ETF. The SEC also opened a comment period on Cboe’s request for options on ETPs that hold Bitcoin.
Bloomberg ETF expert James Seyffart believes that options trading on spot Bitcoin ETFs could be approved by the end of February. He noted that the SEC is moving faster than expected on these proposals.
BlackRock, the world’s largest asset manager, recently received approval from the SEC to offer an exchange-traded fund tracking the Bitcoin value. Their iShares Bitcoin Trust became the first BTC spot ETF to record over $1 billion in inflows.
Delay On Ethereum Spot ETF?
While BlackRock’s Bitcoin spot ETF is performing well, the asset manager may have to wait longer to launch an exchange-traded product holding Ethereum. The SEC announced an extension of the review period for Fidelity’s Ethereum ETF application, allowing them more time to consider the proposed rule change and related issues.
Seyffart commented on the delay, stating that it was expected. However, he suggested that late May could be a critical period for the SEC to approve multiple Ether ETFs, including BlackRock’s.
Overall, options trading on BlackRock’s Bitcoin spot ETF could be approved by the end of February, according to analysts. Meanwhile, the launch of an Ethereum spot ETF may face delays, but there is potential for approval in late May.
Hot Take: Options Trading Could Boost Bitcoin ETF Market
The possibility of options trading on BlackRock’s Bitcoin spot ETF could have a positive impact on the market. Options provide investors with more flexibility and risk management tools, attracting a wider range of participants. This increased activity and liquidity could drive further interest in Bitcoin as an investment asset.
If approved, options trading on a Bitcoin ETF would also signify a significant step towards mainstream adoption of cryptocurrencies. It would bring more legitimacy to the market and potentially encourage other financial institutions to explore similar offerings.
Overall, the introduction of options trading on BlackRock’s Bitcoin spot ETF has the potential to fuel further growth and development in the crypto space. Investors should keep a close eye on regulatory updates and developments in this area.
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