Options for the iShares Bitcoin Trust (IBIT) might start trading on Nasdaq as soon as tomorrow. That’s according to the head of ETP listings at the exchange. The U.S. SEC approved options for spot bitcoin ETFs on several exchanges back in September. Other spot products could also see options available in the next few days.
This move is exciting for many. Options trading on spot bitcoin ETFs could attract more institutional interest in crypto. Nasdaq is ready to make this happen. “Our intent at Nasdaq is to list and trade these options as early as tomorrow,” said Alison Hennessy, head of ETP listings at Nasdaq, during an interview with Bloomberg TV. “Getting these options listed on IBIT into the market will be very exciting for investors because that’s really what we have heard from them.”
Right now, there are eleven U.S.-based spot bitcoin ETFs on the market. However, only one—BlackRock's iShares Bitcoin Trust (IBIT)—is listed on Nasdaq. This makes IBIT the only option for trading in this context.
So, what are options? They are a type of financial derivative. They let investors buy or sell an underlying asset, which in this case is IBIT, at a set price within a specific time frame. Traders find them appealing because they can make leveraged bets and hedge other positions.
The SEC gave the green light for IBIT options in September. They also approved rule changes from the New York Stock Exchange (NYSE) and Cboe Global Markets for other spot bitcoin ETFs.
As for the other bitcoin ETFs, options trading could kick off in just a few days. James Seyffart, an ETF analyst at Bloomberg Intelligence, mentioned, “It’s likely that these things start trading this week, potentially within the next day or two. As far as we can tell, all of the regulatory and bureaucratic hurdles have been cleared. It’s just a matter of crossing t’s and dotting i’s.”
Options trading is expected to draw more institutions into the crypto market. However, it remains to be seen how the leverage and hedging involved will impact price movements.