Nasdaq Inc. has announced plans to start listing options on BlackRock Inc’s Bitcoin exchange-traded fund (ETF) today.
This move allows traders to use derivatives to bet on or against the world’s biggest digital asset, bringing Bitcoin closer to traditional financial markets. Alison Hennessy, who leads ETP listings at Nasdaq, shared this news on Bloomberg’s ETF IQ on Monday.
She said, “Our goal at Nasdaq is to list and trade these options as soon as Tuesday.” Hennessy highlighted the excitement around these options, adding, “Getting these options listed on IBIT will be very exciting for investors, as that’s what they’ve been asking for.”
The Options Clearing Corporation (OCC) updated a document on its website Monday for new options listings, with the equity derivatives clearing organization signalling that the iShares Bitcoin Trust ETF (IBIT)—a $43 billion product—would see options listed on the Nasdaq.
Even though the Securities and Exchange Commission (SEC) approved the listing of options for spot Bitcoin ETFs last month, a memo released by the OCC on Monday represented the last major hurdle toward their launch, according to Bloomberg ETF analyst Eric Balchunas
The Nasdaq spokesperson later confirmed to Decrypt that the options will indeed be listed on Tuesday.
In a one-page document, the OCC said that it’s “preparing for the clearance, settlement, and risk management” of options for spot Bitcoin ETFs. The decision was reached following an advisory released by the Commodities Futures Trading Commission (CFTC), the OCC said.
Overall, analysts said that options would make it easier, cheaper, and safer for investors to participate in the Bitcoin market through ETFs. As financial derivatives, options give a buyer the right to buy or sell an asset at a specific price within a given window of time. Reported by DECRYPT
