NYSE and CBOE had their applications to list options of spot Bitcoin ETFs approved, signaling new price action for the asset.
The United States Securities and Exchange Commission (SEC) has approved applications from the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE) to list options of spot Bitcoin exchange-traded funds (ETFs). The move was much anticipated as industry participants believe this will bring more liquidity to the Bitcoin market and take the asset’s price to the next level.
With the approval, options trading will be allowed for 11 spot BTC ETF issuers on the NYSE. They include Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, VanEck Bitcoin Trust, the WisdomTree Bitcoin Fund, the Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, the BlackRock iShares Bitcoin Trust ETF, and the Valkyrie Bitcoin Fund.
The CBOE will also be able to list options of these ETFs minus the Grayscale Bitcoin Mini Trust. It filed its application in August 2024 via a proposed rule change. That rule change, alongside the SEC nod, has enabled bringing BTC ETFs to the same category as commodity ETFs.
Options provide a layer of safety to trading BTC ETFs as the Options Clearing Corporation (OCC) eliminates counterparty risk. Essentially, traders can execute guaranteed trades—the OCC steps in to clear the trades if either party to a trade does not execute their end of the deal.
That guarantee will bring large numbers of traders and volumes of liquidity to the BTC market. As that occurs, BTC volatility is expected to decrease, but more importantly, its price is expected to surge to new heights with its newfound legitimacy. Those skeptical of interacting with the asset will also now want to get in on the action.
Furthermore, this marks a shift from LedgerX and Deribit, which many in the industry argued was not a significant shift at all. Jeff Park, head of alpha strategies at Bitwise Investments, mentioned this was a tremendous move from LedgerX and Deribit, exchanges that do not have central guarantors. With options listings on NYSE and CBOE, the OCC acts as the central guarantor.
SEC Delayed Approving CBOE’s Request to List ETH Options
In related news, the SEC recently delayed approving the CBOE’s request to list options of spot Ether ETFs. It was supposed to occur on October 19. However, the SEC moved it to December 3.
