SEC Approves Nasdaq's Listing Of BlackRock's Bitcoin ETF Options

According to PANews, the U.S. Securities and Exchange Commission (SEC) has approved a rule change allowing the Nasdaq International Securities Exchange to list and trade options for BlackRock's spot Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT). This decision marks a significant step in expanding the range of Bitcoin-related derivative products, providing investors with additional tools to manage exposure to the world's largest cryptocurrency. Since the approval of several Bitcoin-related ETFs in the U.S., BlackRock has been seeking approval for such listings at least since March of this year. The SEC's approval follows several amendments submitted by Nasdaq ISE, aimed at addressing concerns about manipulation and excessive risk in the emerging crypto options market. The IBIT options will be physically settled and employ an American exercise style, offering hedging services for investors looking to manage Bitcoin-related risks. Despite the approval, the SEC's move stems from ongoing concerns about the potential risks associated with cryptocurrency derivatives. Comments submitted during the review process highlighted worries about market volatility and the broader integration of cryptocurrencies with traditional financial markets. Some urged the SEC to delay approval until the Bitcoin market stabilizes further. Nonetheless, the SEC found that the exchange's surveillance mechanisms, including real-time monitoring and cross-market surveillance sharing agreements with the Chicago Mercantile Exchange, are sufficient to prevent manipulation.