SEC Approves Options for 11 Spot Bitcoin ETFs on NYSE and CBOE

The United States Securities and Exchange Commission (SEC) has approved options trading for 11 spot Bitcoin exchange-traded funds (ETFs) offered in the country. Investors will access the service through the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).

SEC Approves Listing of Options

According to NYSE’s filing, the SEC provided “accelerated approval,” allowing the listing and trading of options on a range of Bitcoin ETFs. Similarly, CBOE also received approval to list and trade options on US spot Bitcoin ETFs.

These approvals cover a range of funds, including the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Fund, Grayscale Bitcoin Trust BTC, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, iShares Bitcoin Trust ETF, and Valkyrie Bitcoin Fund.

The SEC noted that the rule change aligns with Section 6(b)(5) of the Securities Exchange Act, which emphasizes the need for exchanges to have measures to prevent fraudulent and manipulative activities. According to the agency’s filings, this section also aims to facilitate a free and open market while protecting investors and the public interest.

The SEC had previously approved these spot Bitcoin ETFs in January, and the Nasdaq stock exchange received the first approval for listing options on the iShares Bitcoin Trust in September.

Listing Timeline Remains Unclear

Eric Balchunas, a senior ETF analyst at Bloomberg, commented on the approval via a post on X (formerly Twitter). He noted that the decision was expected, given the recent approval for Nasdaq, and added that while the approval is positive, the exact timeline for the listing remains unclear.

They approved same thing for Nasdaq recently so not a big surprise but still good news as SEC was big hurdle. We hearing good things about the rest of process altho exact timeline for listing date still unclear. https://t.co/N9squVSXfS

— Eric Balchunas (@EricBalchunas) October 18, 2024

In a broader context, Balchunas highlighted that US-based spot Bitcoin ETFs have surpassed $20 billion in total net inflows, marking a notable milestone. He described this figure as the “most difficult metric to grow” for ETFs.

Balchunas attributed the $20 billion achievement to a $1.5 billion inflow in the past week, a shift from prior weeks that saw outflows and negative sentiment. Improved market conditions have sparked renewed interest in Bitcoin ETFs, driving higher inflows into the sector.