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Today, enjoy the On the Margin newsletter on Blockworks.co. Tomorrow, get the news delivered directly to your inbox. Subscribe to the On the Margin newsletter. Welcome to the On the Margin Newsletter, brought to you by Ben Strack and Casey Wagner. Here’s what you’ll find in today’s edition: Ben breaks down the significance of the SEC’s latest bitcoin ETF options approval. What to expect when all five SEC commissioners head to Capitol Hill tomorrow. There may not be a splashy FOMC meeting this week. But economic data will be flowing in regardless.  The January launch of US ETFs that directly held bitcoin was a big deal. Now, many expect the upcoming options on those funds to also be a game-changer. If you missed it on Friday, the SEC gave “accelerated” approval of options on BlackRock’s IBIT — with segment observers expecting the regulator to give similar blessings soon. SEC approval was not exactly quick, coming eight-plus months after the ETF launched. Other agencies (the CFTC and OCC) still have to give the go-ahead, too, so the exact timeline on when these options will list remains unknown.   A quick reminder: An option is a contract representing the right to buy or sell a financial product at a certain price for a specific period of time.  Grayscale Investments was vocal about the need for swift approval of options on commodity-based ETPs. The firm, which operates GBTC, had essentially argued that if options on bitcoin futures exist, so too should those on spot products.   Options would facilitate price discovery in the ETP shares, Grayscale noted. The SEC acknowledged in its Friday filing that several proposal proponents noted such options would “help investors to hedge their positions and manage crypto-related risk.” In the words of Bloomberg Intelligence’s Eric Balchunas, the approval “will attract more liquidity,…

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Filed under: News - @ September 23, 2024 8:18 pm