The Securities and Exchange Commission seeks public feedback on proposals for options trading associated with BlackRock and Cboe’s spot Bitcoin exchange-traded funds. SEC opens comments on options trading for BlackRock, Cboe spot Bitcoin ETFs
On January 1st, the United States Securities and Exchange Commission (SEC) announced… There have been 19 comments submitted regarding suggestions for options trading on Bitcoin ETFs. One notice from the SEC is about a proposed amendment that would permit Nasdaq to offer options trading on the iShares Bitcoin Trust managed by BlackRock. Another notice from the SEC pertains to a proposed amendment intended to enable Cboe Exchange Inc. to… [The text seems to be cut off here. If you can provide the continuation, I can help complete the paraphrasing for you.] to catalog and engage in trading activities for options tied to a range of Bitcoin-based exchange-traded products. While the notice doesn’t specify which particular funds are covered by the proposal, Cboe BZX oversees the listing and trading of most spot Bitcoin ETFs that were greenlit this January, such as those offered by Ark Invest, VanEck, WisdomTree, Invesco, Fidelity, GlobalX, and Franklin Templeton. The introduction of options trading would enable fresh investment tactics for every one of these funds. This strategy would enable investors to trade with leverage, which could lead to larger profits but also comes with increased risk. Bloomberg ETF analyst James Seyffart remarked on this advancement. The SEC has recognized the filings submitted as 19b-4 forms, which seek permission to offer trading in options for Bitcoin-based exchange-traded funds (ETFs). This is quicker than the usual pace of the SEC. The SEC could authorize options by the end of February if it chooses to expedite the process.