SEC Approves Options Trading for BlackRocks Bitcoin ETF, Boosting Adoption
- Th SEC pprovd BlckRocks options trding proposl for its spot Bitcoin ETF, boosting institutionl Bitcoin doption.
- Options contrcts will b physiclly sttld with Amricn-styl xrcis, offring flxibility for institutionl invstors.
- Furthr rgultory pprovls from OCC nd CFTC r ncssry bfor th officil listing of options.
Th U.S. Scuritis nd Exchng Commission (SEC) hs tkn n importnt stp towrd intgrting Bitcoin into minstrm finnc by pproving BlckRocks proposl for options trding on its spot Bitcoin ETF, th iShrs Bitcoin Trust (IBIT). Announcd on Sptmbr 20th, this dcision mrks turning point for institutionl doption of Bitcoin.
Th SECs pprovl llows for th listing nd trding of options contrcts tid to IBIT shrs on th Nsdq xchng undr th tickr symbol IBIT. Notbly, ths options will b physiclly sttld, mning tht upon xcution, th contrcts will dlivr ctul Bitcoin. This rrngmnt spcificlly ddrsss th nds of institutionl invstors looking for ltrntiv mthods to mng thir xposur to Bitcoins pric fluctutions.
Options on IBIT will be physically settled with American-style exercise, stated the SEC notice. This implies that option holders have the flexibility to exercise their right to buy or sell Bitcoin at a predetermined price by the expiry date.
Industry xprts viw th SECs dcision s positiv dvlopmnt for th Bitcoin cosystm. Th introduction of options trding is xpctd to nhnc liquidity within th Bitcoin ETF mrkt, potntilly ttrcting lrgr institutionl invstors.
Bloombrg ETF nlyst Eric Blchuns rmrkd, Hug win for th bitcoin ETFs (s it will ttrct mor liquidity which will turn ttrct mor big fish). Incrsd liquidity cn ld to tightr bid-sk sprds nd mor fficint pric discovry within th mrkt.
Options for Spot Bitcoin ETFs Need Additional Approval
Howvr, whil th SECs pprovl is notbl dvncmnt, it is mrly th initil chllng. Th options for IBIT still nd furthr rgultory pprovl from th Offic of th Comptrollr of th Currncy (OCC) nd th Commodity Futurs Trding Commission (CFTC) bfor thy cn officilly list.
This is just on stg of pprovl; th OCC nd CFTC hv to pprov s wll bfor thy officilly list, sid Blchuns. Although th timlin for ths dditionl pprovls is uncrtin, th SECs ndorsmnt indicts positiv trnd towrd brodr rgultory ccptnc for Bitcoin ETFs.
Erlir this wk, th SECs dcision undrscord n importnt distinction btwn xchng-trdd funds (ETFs) nd xchng-trdd products (ETPs). Although both r trdd on xchngs, th SEC diffrntits thm bsd on thir rgultory frmworks.
Ntsh Vij Grinr, dirctor of th SECs Division of Invstmnt Mngmnt, clrifid, Whn wr tlking bout spot bitcoin ETPs, thyr xchng-trdd products. This clrifiction indicts tht Bitcoin ETPs do not ncssrily fll undr th Invstmnt Compny Act of 1940, unlik trditionl ETFs. Consquntly, this distinction impcts invstor protction nd custodil considrtions, rs th SEC is closly rviwing.
Morovr, th SECs pprovl for options trding on BlckRocks iShrs Bitcoin Trust rprsnts crucil dvncmnt towrd institutionl ccptnc of Bitcoin. Whil chllngs in rgultion rmin, this dcision rflcts significnt movmnt towrd intgrting cryptocurrncis into th minstrm finncil systm.
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Read more: https://www.tronweekly.com/sec-approves-options-for-blackrocks-bitcoin-etf/
Text source: TronWeekly
