The US Securities and Exchange Commission (SEC) took an important step on October 18 by issuing spot Bitcoin on the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE). 
$68,156 Approved the listing of options for exchange-traded funds (ETFs).
Expansion of ETF Option Approvals
This approval comes after the SEC previously approved funds such as Fidelity Wise Origin Bitcoin Fund and ARK21Shares Bitcoin ETF. Among the 11 recently approved ETFs is BlackRock’s iShares Bitcoin Trust ETF. This development is considered as a great opportunity for institutional investors and traders.
The newly approved options offer investors more flexible and cost-effective ways to increase their Bitcoin exposure and manage their risk. These options will increase liquidity, improve price efficiency and reduce volatility, the SEC said. Additionally, it is aimed to increase market transparency.
Bitwise manager Jeff Park stated that these options will provide liquidity to Bitcoin markets and may direct some investors to purchase Bitcoin. “Options can add liquidity to the market and force short traders to buy Bitcoin,” he said.
Advantages for Institutional Investors
With this approval, the value of Bitcoin also increased. Following the approval news, Bitcoin’s price increased by 1.29% to $69,125. CBOE first proposed this rule change in August 2024, and the SEC’s approval covers all listed ETFs except Grayscale Bitcoin Mini Trust.
Ultimately, the approval of Bitcoin ETF options contributes to the maturation and wider acceptance of the cryptocurrency market. While more opportunities are being created for institutional investors, new investment instruments are also coming to the fore in the market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
