Bitcoin

The US Securities and Exchange Commission (<a href="https://blockhead.co/tag/sec?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">SEC</a>) has <a href="https://www.sec.gov/files/rules/sro/nyseamer/2024/34-101386.pdf?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">approved</a> changes to stock exchange rules that allow for the listing of options linked to Bitcoin ETFs.<a href="https://www.blockhead.co/tag/nyse" rel="noopener noreferrer nofollow">NYSE</a> will now be able to offer options on <a href="https://www.blockhead.co/tag/grayscale/" rel="noopener noreferrer nofollow">Grayscale Bitcoin Trust (GBTC)</a>, Grayscale Bitcoin Mini Trust (BTC), and <a href="https://www.blockhead.co/tag/bitwise" rel="noopener noreferrer nofollow">Bitwise Bitcoin ETF (BITB)</a>, while Cboe Global Markets can list options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).In total, the regulator granted &#34;accelerated approval&#34; to 11 ETFs to list options to spot Bitcoin prices.Last month, the SEC <a href="https://www.sec.gov/files/rules/sro/ise/2024/34-101128.pdf?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">granted</a> approval to Nasdaq ISE to list and trade options on <a href="https://www.blockhead.co/tag/blackrock" rel="noopener noreferrer nofollow">BlackRock’s iShares Bitcoin Trust (IBIT)</a> after the exchange withdrew the application one month prior.The SEC said these options &#34;would permit hedging, and allow for more liquidity, better price efficiency, and less volatility with respect to the underlying Funds. Further, permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products.&#34;Last week, Grayscale filed with the SEC to convert its Digital Large Cap Fund into an ETF. The fund currently manages over $520 million in assets, offering exposure to a basket of five cryptocurrencies, including <a href="https://www.blockhead.co/tag/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>, <a href="https://www.blockhead.co/tag/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>, Solana, Ripple, and Avalanche, weighted at 75.58%, 17.83%, 4.16%, 1.76%, and 0.66% respectively.<a href="https://www.thebrn.co/?ref&#61;blockhead.co" rel="noopener noreferrer nofollow">BRN</a> analyst, Valentin Fournier, believes that this approval is good news for Bitcoin bulls.&#34;The approval of options on a Bitcoin ETF could significantly impact Bitcoin’s price,&#34; he stated. &#34;First, it will provide analysts with valuable data to better gauge institutional demand and market activity. Second, it will enhance the appeal and utility of Bitcoin ETFs by broadening investment strategies. Lastly, the additional liquidity introduced by options trading could help stabilize Bitcoin’s volatility over time.&#34;

SEC Approves Bitcoin ETF Options But What Does it Mean for BTC?

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