NYSE, CBOE to list Bitcoin ETF options after SEC approval

The U.S. Securities and Exchange Commission has granted “expedited approval” for Bitcoin options exchange-traded funds to list on the New York Stock Exchange and the Chicago Board Options Exchange.

The SEC has given the green light to the NYSE and CBOE to list and trade Bitcoin ETF options, according to filings filed on October 18.

Options give investors the right to buy or sell an asset, called “call” or “put” options, at a specific price before an agreed date. This move is expected to open new opportunities for investors looking to manage risk or take advantage of Bitcoin price fluctuations.

In its NYSE approval, the regulator wrote that options trading could result in “better price efficiency” and “less volatility” for underlying Bitcoin ETFs, potentially stabilizing the broader market.

“Allowing the listing of such options will increase the transparency and efficiency of markets in these and related products,” the application stated.

Options trading on the NYSE will be possible for 11 ETF providers, including:

Fidelity Wise Origin Bitcoin Fund ARK21Shares Bitcoin ETF Invesco Galaxy Bitcoin ETF Franklin Bitcoin ETF VanEck Bitcoin Trust WisdomTree’s Bitcoin Fund Grayscale Bitcoin Trust Grayscale Bitcoin Mini Trust Bitwise Bitcoin ETF BlackRock’s iShares Bitcoin Trust ETF Valkyrie Bitcoin Fund

Meanwhile, the SEC also approved options listings on the CBOE for these funds, with the exception of Grayscale’s Bitcoin Mini Trust.

In early 2024, the SEC had already approved Nasdaq’s application to list and clear BlackRock’s iShares Bitcoin Trust options.

Investors see the approval of Bitcoin ETF options as a significant development that could bring additional liquidity to Bitcoin markets. Jeff Park, head of alpha strategies at Bitwise Invest, called this development a “game changer” for cryptocurrency markets.

Other market observers noted that Wall Street’s involvement could significantly boost Bitcoin markets once trading begins. See below.

Meanwhile, the SEC delayed approval of options trading for spot Ethereum ETFs, which was initially expected in late September, and extended the review period until mid-November.