The U.S. Securities and Exchange Commission (SEC) has provided “accelerated approval” for 11 exchange-traded funds to list and trade options linked to spot bitcoin prices on the New York Stock Exchange, as detailed in a regulatory filing.
In January, the SEC had approved bitcoin ETFs to track bitcoin, marking a significant milestone for both the largest cryptocurrency globally and the wider crypto industry.
Funds including the Fidelity Wise Origin Bitcoin Fund (FBTC.Z), the ARK21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF (BTCO.Z), the Grayscale Bitcoin Trust BTC (GBTC.P), and the iShares Bitcoin Trust ETF (IBIT.O) received this approval on Friday.
The index options, which are listed derivatives providing a fast and cost-effective means to increase exposure to bitcoin, will offer institutional investors and traders an alternative strategy to hedge their exposure to the world’s leading cryptocurrency.
Options, as listed derivatives, grant the holder the right to either purchase or sell an asset, such as a stock or exchange-traded product, at a predetermined price within a specified timeframe.
Last month, the regulator also approved the listing and trading of options for asset manager BlackRock’s (BLK.N) exchange-traded fund on the Nasdaq.
