The U.S. Securities and Exchange Commission (SEC) has approved rule changes allowing the trading of options on spot Bitcoin ETFs. These products have already attracted billions of dollars in investments.
According to SEC memoranda, the New York Stock Exchange (NYSE) will be able to list and trade options on the Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB). Cboe Global Markets has also received approval to trade options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB).
Many believe that trading options on Bitcoin ETFs will increase institutional investor interest and improve liquidity. The SEC notes that this could reduce volatility and enhance market transparency.