Bitcoin ETF Options Trading Gets the Green Light from the SEC

The US Securities and Exchange Commission (SEC) has given the go-ahead for options trading for all 11 spot Bitcoin ETFs on the New York Stock Exchange and Chicago Board Options Exchange.

The US Securities and Exchange Commission (SEC) has approved options trading for all 11 spot Bitcoin exchange-traded funds (ETFs) on the New York Stock Exchange and Chicago Board Options Exchange.

This follows the recent approval of BlackRock’s IBIT options on the Nasdaq by the SEC a few weeks ago.

Bloomberg ETF analyst Eric Balchunas noted that while the SEC approval is a major hurdle, other regulatory steps remain.

“Good news as SEC was a big hurdle. We’re hearing good things about the rest of the process, although the exact timeline for listing date is still unclear.”

Balchunas pointed out that the Commodity Futures Trading Commission (CFTC) still gets the final say on approval when commodities like Bitcoin are involved.

This news comes as cumulative Bitcoin ETF inflows surged past $21 billion for the first time on October 18, with nearly $1 billion flowing into Bitcoin funds in just two days last week.

This “flowmageddon,” as Balchunas described it, will “attract more liquidity, which will, in turn, attract more big fish.”

The approval of Bitcoin ETF options trading will allow traders to take on larger Bitcoin positions with less capital through leverage.

This increased liquidity could also lead to greater price swings and market volatility.

Bitcoin is currently trading around a three-month high of $68,100.