The post SEC Approves Options Trading for BlackRock’s iShares Bitcoin Trust on Nasdaq appeared on BitcoinEthereumNews.com.

BlackRock’s spot Bitcoin ETF has been greenlighted by the United States SEC for options trading, signaling a new chapter in cryptocurrency investments. This approval allows Nasdaq to list options for the iShares Bitcoin Trust, expanding the market since its January 2024 inception. The SEC’s decision ensures that these options follow the same regulatory standards as other ETFs, with American-style exercise for physically settling contracts. Explore the groundbreaking approval of BlackRock’s Bitcoin ETF options by the SEC, setting new precedents in the investment landscape. SEC Approves Options Trading for BlackRock’s iShares Bitcoin Trust The United States Securities and Exchange Commission has approved options trading for BlackRock’s iShares Bitcoin Trust on Nasdaq, marking a significant milestone in the expanding Bitcoin ETF market. Officially announced on September 20, the ruling adds a new layer of tradable assets to the existing ETF, broadening investors’ opportunities. Details of the Approval and Trading Mechanism According to the SEC’s notice, options on the iShares Bitcoin Trust will be traded in a manner consistent with other ETF options, adhering to strict regulatory guidelines. These options give traders the right, but not the obligation, to buy or sell Bitcoin at a predetermined price within a specified timeframe. This American-style exercise can be executed at any time before the expiration date, allowing for greater flexibility and strategic planning. Broader Market Implications The approval denotes that the underlying asset—Bitcoin in this case—must meet specific criteria such as being widely held, actively traded, and possessing a significant number of outstanding shares. This ensures a secure and orderly market environment, which is crucial for institutional and individual investors alike. BlackRock’s successful navigation through these regulatory hurdles sets a precedent for future cryptocurrency investment products. Strategic Timing and Market Readiness The timing of this approval is noteworthy; it comes at a period when interest…

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Filed under: News - @ September 20, 2024 10:09 pm