The US Securities and Exchange Commission's (SEC) approval of listing Bitcoin spot ETF options is viewed by analysts as a significant move towards the institutionalization of the cryptocurrency market.
SEC Approval
On September 20, the SEC greenlighted the listing of options on Blackrock’s iShares Bitcoin Trust ETF (IBIT) on the Nasdaq’s electronic securities exchange. This marks the first instance the regulator has approved options tied to spot Bitcoin. Jeff Park, head of alpha strategies at Bitwise Invest, termed this as a monumental advancement for cryptocurrency markets.
Market Impact
Park noted that having a regulated market where the OCC protects participants from counterparty risks opens up new opportunities for investors and helps increase trading volumes. This scenario allows Bitcoin’s synthetic notional exposure to grow without the default risks that previously deterred investors.
Future Steps
To commence trading, Nasdaq needs approval from two more regulatory bodies – the Commodities Futures Trading Commission (CFTC) and the OCC. Analysts expect these approvals soon, followed by similar products emerging on other exchanges. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, anticipates other exchanges will be approved shortly.
The SEC's approval of listing Bitcoin spot ETF options represents a significant step for the cryptocurrency market, opening up new opportunities for institutional investors and contributing to the further stabilization and growth of the market.
Comments