SEC OKs options trading for BlackRock iShares Bitcoin Trust

The U.S. Securities and Exchange Commission has approved Nasdaq to list and trade options on BlackRock’s iShares Bitcoin Trust.

According to details shared in the official filing filed on September 20, the SEC’s approval came after a lengthy review process that began on January 9, 2024. Nasdaq first submitted its proposal to trade options on exchange-traded products on that date.

Nasdaq has consistently followed through on its proposal with multiple changes starting on Jan. 11. In the months that followed, the exchange introduced additional changes and information about IBIT and other Bitcoin-based (BTC) ETPs.

The SEC’s approval involved multiple stages of review

After nearly eight months of scrutiny, the SEC finally gave the green light to Nasdaq’s proposal, with the commission noting that the exchange even proposed changing its rules to list and trade options on IBIT.

According to the official filing, options on IBIT will be physically settled using American-style execution. Nasdaq also emphasized that IBIT options will be under the exchange’s continuous listing standards.

“Options on IBIT will be subject to the Exchange’s rules applicable to the listing and trading of all ETF options on the Exchange,” the filing said.

Crypto analysts say the decision is bullish

Reacting to the SEC’s decision, several prominent crypto investors and analysts took to X to share their views. Crypto investor Ash Crypto tweeted that it was extremely bullish.

Senior ETF analyst Eric Balchunas also shared details about the approval of X. Balchunas tweeted his assumption that the others will be approved shortly.

See below.

Balchunas also noted that this is a big win for Bitcoin ETFs, noting that it will attract more liquidity, but stressed that this is “just a validation phase.”

The offering must receive approval from the OCC and CFTC before official listing.

I assume the others will be approved soon. Big win for Bitcoin ETFs (as it will attract more liquidity, which will attract more big fish). This is a pleasant surprise in terms of timing, but not shocking because @JSeyff and I stated that there was a 70% chance of approval by the end of May. pic.twitter.com/a8mUGLOcKG

— Eric Balchunas (@EricBalchunas) September 20, 2024

“I assume the others will be approved shortly,” Balchunas added, adding that this is a “big win” for Bitcoin ETFs, “because it will attract more liquidity, which will attract more big fish.”