On October 18, the United States Securities and Exchange Commission (SEC) approved applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options for spot Bitcoin exchange-traded funds (ETFs).

SEC Approval and Its Implications

The SEC has approved options listing for 11 ETF providers on the NYSE, including Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, and others. This decision allows options trading for Bitcoin ETFs similarly to other commodity-based ETFs, except for Grayscale's Bitcoin Mini Trust.

ETF Providers and Expectations

The approval now allows option listings for providers such as Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, WisdomTree’s Bitcoin Fund, and BlackRock’s iShares Bitcoin Trust ETF.

Impact on the Bitcoin Market

The approval is expected to bring significant changes to the Bitcoin market by increasing liquidity and potentially impacting price movements. Jeff Park of Bitwise noted this improvement could help avoid risks associated with existing platforms like LedgerX and Deribit.

The SEC's approval for listing options on spot Bitcoin ETFs could significantly impact the market by enhancing liquidity and stabilizing price fluctuations.