The U.S. securities regulator has provided “accelerated approval” for 11 exchange-traded funds to list and trade options based on spot bitcoin prices on the New York Stock Exchange, as noted in a regulatory filing.
In January, the Securities and Exchange Commission (SEC) approved the bitcoin ETFs to track bitcoin, marking a significant milestone for the largest cryptocurrency and the wider crypto sector.
Which funds obtained approval?
The Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Grayscale Bitcoin Trust BTC, and iShares Bitcoin Trust ETF are among the funds that received approval on Friday.
The index options—listed derivatives that provide a fast and cost-effective method to enhance exposure to bitcoin—would offer institutional investors and traders an alternative avenue to hedge their exposure to the largest cryptocurrency.
Options are listed derivatives that grant the holder the right to buy or sell an asset, like a stock or exchange-traded product, at a predetermined price by a specific date.
Last month, the regulator approved the listing and trading of options for BlackRock’s exchange-traded fund on the Nasdaq.
