The U.S. Securities and Exchange Commission (SEC) has granted “accelerated approval” for listing Bitcoin options exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).

According to filings dated October 18, the SEC has greenlighted the NYSE and CBOE to list and trade options for Bitcoin ETFs. Options provide investors the right to buy or sell an asset—referred to as “call” or “put” options—at a specific price before an agreed date. This move is anticipated to open up new opportunities for investors aiming to manage risk or capitalize on Bitcoin price fluctuations.

Potential Market Impact

In its NYSE approval, the regulator mentioned that options trading could lead to “better price efficiency” and “less volatility” for the underlying Bitcoin ETFs, potentially stabilizing the broader market.

“Permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products,” the filing added.

Available Options on NYSE

For NYSE, options trading will be available for 11 ETF providers, including:

  • Fidelity Wise Origin Bitcoin Fund
  • ARK21Shares Bitcoin ETF
  • Invesco Galaxy Bitcoin ETF
  • Franklin Bitcoin ETF
  • VanEck Bitcoin Trust
  • WisdomTree’s Bitcoin Fund
  • Grayscale Bitcoin Trust
  • Grayscale Bitcoin Mini Trust
  • Bitwise Bitcoin ETF
  • BlackRock’s iShares Bitcoin Trust ETF
  • Valkyrie Bitcoin Fund

Options on CBOE

Meanwhile, the SEC also approved options listings for these funds on the CBOE, with the only exception being Grayscale’s Bitcoin Mini Trust.

Earlier Approvals

Earlier in 2024, the SEC had already approved Nasdaq’s application to list and trade options for BlackRock’s iShares Bitcoin Trust.

Market Reactions

Investors view the approval of options for Bitcoin ETFs as a significant development that could bring additional liquidity to Bitcoin markets. Jeff Park, Bitwise Invest’s head of alpha strategies, described this development as a “game-changing” moment for cryptocurrency markets.

“This is a pivotal moment for Bitcoin markets. Wall Street’s involvement could significantly boost Bitcoin markets once trading begins,” noted market observers.

Pending Approvals

Meanwhile, the SEC has delayed the approval of options trading for spot Ethereum ETFs, initially expected by the end of September, extending the review period to mid-November.

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