Blackrock Seeks SEC Approval for Options Trading on Bitcoin ETF
Blackrock, the world’s largest asset manager, is looking to offer options on its bitcoin exchange-traded fund (ETF), the Ishares Bitcoin Trust (IBIT). Nasdaq has filed a proposed rule change with the SEC to list and trade options on IBIT, stating that it will benefit investors by providing them with a lower-cost investment tool and a hedging vehicle. Analysts believe that the SEC could approve options trading on the ETF before the end of February. The SEC has opened a comment period for the proposed rule change, which will last 21 days. Since its launch, IBIT has accumulated over 28,000 bitcoins.
Spot Bitcoin ETFs See Strong Trading Volumes
Spot bitcoin ETFs have been experiencing high trading volumes since their launch. Nine spot bitcoin ETFs saw increased trading volume, up 12% compared to the previous day and 53% from two days prior. The Fidelity Wise Origin Bitcoin Fund and Blackrock’s IBIT are considered to be the top competitors. The SEC approved 11 spot bitcoin ETFs last month, with IBIT leading in terms of total trading volume, closely followed by Fidelity’s FBTC. However, Grayscale’s bitcoin ETF has seen a significant outflow of bitcoin. Blackrock’s spot bitcoin ETF is ranked in the top 15 ETFs by assets and the top 2% by daily trading volume.
Hot Take: Blackrock’s Move Boosts Bitcoin ETF Market Confidence
Blackrock’s pursuit of offering options on its bitcoin ETF demonstrates continued growth and confidence in the market. These options would provide investors with new and cost-efficient tools to gain exposure to spot bitcoin and have a hedging mechanism for their investment needs. The SEC’s opening of a comment period for the proposed rule change indicates a willingness to explore new possibilities in the crypto space. Furthermore, the strong trading volumes seen by spot bitcoin ETFs indicate growing interest and demand for these investment vehicles. Overall, this development signals a positive trajectory for the crypto industry and its integration with traditional finance.
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