Key Points
- The SEC has granted “accelerated approval” for NYSE American LLC and Cboe Exchange, Inc. to list and trade options on multiple spot bitcoin ETFs.
- This decision expands on the SEC’s earlier approval in September for options trading on the iShares Bitcoin Trust on Nasdaq ISE, LLC.
SEC Extends Options Trading to Multiple Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the evolution of cryptocurrency-based financial products. On October 18, 2024, the agency granted “accelerated approval” to both NYSE American LLC and Cboe Exchange, Inc., allowing them to list and trade options on multiple spot bitcoin exchange-traded funds (ETFs).
This move builds upon the SEC’s initial approval of spot bitcoin ETFs in January 2024 and follows its September decision to permit options trading on the iShares Bitcoin Trust on Nasdaq ISE, LLC.
Approved ETFs for Options Trading
The SEC’s approval covers a wide range of spot bitcoin ETFs, including:
- Fidelity Wise Origin Bitcoin Fund
- ARK21Shares Bitcoin ETF
- Invesco Galaxy Bitcoin ETF
- Franklin Bitcoin ETF
- VanEck Bitcoin Trust
- WisdomTree Bitcoin Fund
- Grayscale Bitcoin Trust
- Grayscale Bitcoin Mini Trust (NYSE only)
- Bitwise Bitcoin ETF
- iShares Bitcoin Trust ETF
- Valkyrie Bitcoin Fund
Regulatory Considerations
In its filings, the SEC emphasized that this decision aligns with Section 6(b)(5) of the Securities Exchange Act. This section requires exchanges to have rules designed to prevent fraudulent and manipulative practices, promote free and open markets, and protect investors and the public interest.
The agency’s accelerated approval process for these options listings indicates a growing acceptance of bitcoin-based financial products within the traditional regulatory framework. This development may signal increased confidence in the maturity and stability of the cryptocurrency market, potentially paving the way for further integration of digital assets into mainstream financial systems.
