Approval of Bitcoin Options Described as “Unbelievably Fantastic”
The post Approval of Bitcoin Options Described as “Unbelievably Fantastic” appeared on BitcoinEthereumNews.com.
The approval of Bitcoin ETF options marks a new era for the Bitcoin market. With leveraged exposure, exponential growth potential, and volatility unlike anything before, Bitcoin’s synthetic notional value could skyrocket. The U.S. Securities and Exchange Commission has approved the listing and trading of options for asset manager BlackRock’s spot bitcoin exchange-traded fund on the Nasdaq. Options trading for BlackRock’s fund iShares Bitcoin Trust has been approved with ticker symbol “IBIT”, the regulator said in a notice on Friday. The index options – listed derivatives offering a quick and inexpensive way to amplify exposure to bitcoin – on a bitcoin index would give institutional investors and traders an alternative way to hedge their exposure to the world’s largest cryptocurrency. The approval for listing and trading options tied to a bitcoin ETF represents another positive step for cryptocurrency, once considered a nascent asset class. Source: SEC Cryptocurrency has moved closer to mainstream acceptance since the launch of bitcoin ETFs earlier in the year.Options give holders the right to buy or sell an asset, such as a stock or exchange-traded product, at a pre-determined price by a set date. Exchanges began applying for the spot bitcoin ETF options as soon as it was clear the SEC would approve the underlying ETFs in January. The SEC oversees technical rule changes that exchanges must make to list options. The regulator also said that its existing surveillance procedures will apply to IBIT options. Bloomberg analyst Eric Balchunas said “I’m assuming others will be approved in short order. Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish).” “It’s Going to be Unbelievably Fantastic.” While it will take months to assess the full impact of Bitcoin Options, Jeff Park, Head of Alpha Strategies at Bitwise Invest,…
Filed under: News - @ September 22, 2024 10:21 pm