Nasdaq, Cboe apply to offer BTC ETF options trading, get fast response

Options are “the next logical step” for BTC ETF trading and could begin by the end of next month, according to an analyst.

On Jan. 19, The US Protections and Trade Commission recognized Nasdaq and Cboe proposition to start exchanging choices on Bitcoin trade exchanged reserves (ETFs).

To be able to list and trade options on BlackRock’s iShares Bitcoin Trust, Nasdaq requested a rule change. Cboe applied to exchange choices on “ETPs [exchange-exchanged products] that Hold Bitcoin.” Six of the ten BTC ETFs approved by the SEC were launched by Cboe.

BTC ETFs started exchanging on Nasdaq and Cboe on Jan. 11, subsequent to getting endorsement from the SEC daily prior. On January 18, Catherine Clay, executive vice president of Cboe, disclosed to CNBC that the exchange was experiencing “good inflows” into the BTC ETFs, which continued to track the price of BTC “as expected.”

Mud referred to choices as “the following sensible step on the [BTC] ETFs.” She said BTC ETF choices exchanging would add utility and hazard relief to the items. Nasdaq said in its recording that choices would offer “cost efficiencies and expanded supporting methodologies.”

Choices are a subsidiary that permits the holder to trade a resource at a foreordained cost at a foreordained time. VettaFi investigator Dave Nadig told CNBC on Jan. 17:

“I think you’re going to start seeing all sorts of hedge fund players in the [BTC ETF options] space. Folks that might not have been traditionally speculating on crypto directly in the crypto ecosystem are now going to have something to play with.”

Cboe petitioned for consent to list choices “last week,” Dirt said, and “We’re truly in this brief delay to see how the controllers will manage our documenting and other trades’ filings also. [… ] It’s truly hard to be aware assuming that we will try and see endorsement.”

Clay added that Cboe’s options clearing corporation was required to submit comparable paperwork to the SEC and CFTC.

Bloomberg ETF investigator James Seyffart remarked on the surprising expediency of the Nasdaq declaration. Options trading approval could come before the end of February, or at the latest by September 21.

The recommendations will be open for input for 21 days after their distribution in the Government Register.