SEC Approves Bitcoin Options ETF for NYSE and CBOE

Coin World News reported:
The U.S. Securities and Exchange Commission (SEC) is giving the green light for Bitcoin (BTC) exchange-traded funds (ETFs) on two major U.S. exchanges.
In a separate statement, the regulatory body announced the approval of a bid for options trading on ETFs based on BTC, listed on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).
According to the SEC, the approval of options ETFs is due to a recent rule change proposal by Nasdaq, which allowed options trading on the iShares Bitcoin Trust (IBIT), and has yielded positive results.
“The exchanges note that this is a competitive filing, as the Commission recently approved a rule proposal by Nasdaq to allow the listing and trading of options on the iShares Bitcoin Trust, which holds bitcoin. The exchanges assert that the options on the bitcoin funds would provide hedging and allow for increased liquidity, improved price efficiency, and lower fund volatility.”
In September, Jeff Park, the head of Bitwise Alpha Strategies, stated that things could get crazy after the SEC approved Nasdaq’s listing of options on BlackRock’s IBIT.
Park mentioned that the situation with options ETFs would be “incredibly beautiful” due to the fact that BTC cannot be diluted simply by creating more.
“In sum, the Bitcoin ETF options market is the first time in finance where we have a regulated levered product on a truly supply-constrained, permanent commodity. Things could get crazy. In this case, the regulated market may close. But what’s extraordinary about Bitcoin is that there will always be a parallel, decentralized market that can’t be closed, unlike GME, which as you can imagine, will pour gasoline on the fire. It’s going to be incredibly beautiful.”
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