The United States Securities and Exchange Commission (SEC) has approved options trading for BlackRock’s spot Bitcoin exchange-traded fund (ETF), marking a significant development in the cryptocurrency investment space. In a notice published on September 20, the SEC granted Nasdaq permission to list and trade options for the iShares Bitcoin Trust, BlackRock’s spot Bitcoin ETF, under the ticker symbol IBIT.
Options Trading for BlackRock’s Bitcoin ETF
According to the SEC’s notice, options on the iShares Bitcoin Trust will follow the same guidelines as other ETF options on Nasdaq. The options will be “physically settled with American-style exercise,” meaning they can be exercised at any time before expiration. Nasdaq also confirmed that options on IBIT will adhere to the exchange’s initial and continued listing standards. This includes the requirement that the underlying security must have “a substantial number of outstanding shares that are widely held and actively traded.”
This approval signals a major milestone, as it is the first time options for a spot Bitcoin ETF have been approved for listing on a U.S. exchange.
What’s Next for Bitcoin ETF Options?
While this move is a big step forward, it’s still unclear whether other U.S. exchanges will be granted similar approvals for spot Bitcoin ETF options. Bloomberg ETF analyst Eric Balchunas speculated on social media platform X (formerly Twitter) that additional approvals could follow soon. However, he noted that approval from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) is still required before the options can officially be listed.
“The other two don’t have a ‘clock,’ so not sure when they’ll be approved. A big step though nonetheless that the SEC came around,” said Balchunas.
Record Trading Volume for BlackRock’s Bitcoin ETF
BlackRock’s iShares Bitcoin Trust has already seen significant interest from investors. On August 5, the trading volume for IBIT surpassed $875 million, contributing to a combined total of over $1.3 billion across all spot Bitcoin investment products. This surge in trading activity reflects growing institutional demand for exposure to Bitcoin through regulated financial instruments like ETFs.
In addition to its Bitcoin ETF, Nasdaq has also submitted a request to the SEC to allow options trading for spot Ethereum ETFs, signaling potential future growth in cryptocurrency-related investment options.
