According to CoinWorld, in addition to the Federal Reserve, the U.S. Securities and Exchange Commission (SEC) has played another pivotal role in the cryptocurrency sector by approving Nasdaq to list the BlackRock iShares Bitcoin Trust ETF, marking an important step toward the trading of derivatives associated with this ETF.
Before trading commences, these contracts must still receive authorization from the Options Clearing Corporation and the Commodity Futures Trading Commission. The iShares fund and other exchange-traded funds (ETFs) focusing on spot Bitcoin have received applications from other exchanges seeking to list options.
The SEC’s approval has made the listing of options possible, potentially significantly enhancing the ETF’s liquidity by attracting more and larger investors. The largest exchange-traded fund directly investing in Bitcoin is traded under the ticker symbol IBIT.
Since the SEC legalized it and similar products in January following a prolonged legal battle with cryptocurrency fund issuer Greyscale Investments, it has accumulated over $22.7 billion in assets. The SEC’s approval is viewed as a barrier to the next steps for Bitcoin ETFs.
As the first Bitcoin exchange-traded funds begin trading, Wall Street is preparing for the next phase of digital assets and options. Professional investors, and even more astute retail investors, are turning to derivatives as a means to speculate on future returns or to protect themselves from losses
