SEC Expands Bitcoin ETF Market with Options Trading Approval for NYSE and CBOE

The U.S. Securities and Exchange Commission (SEC) has granted accelerated approval for both the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE) to list and trade options on multiple spot Bitcoin exchange-traded funds (ETFs). This landmark decision on October 18 marks a significant expansion of the Bitcoin investment ecosystem.

The approval covers options trading for eleven major Bitcoin ETF providers on the NYSE, including industry giants such as Fidelity, BlackRock’s iShares, and Grayscale. CBOE received similar approval for ten providers, notably excluding the Grayscale Bitcoin Mini Trust from its lineup.

This regulatory green light follows the SEC’s earlier approval of similar options trading on Nasdaq’s iShares Bitcoin Trust in September, suggesting a broader acceptance of crypto-derived financial products by U.S. regulators. The SEC stated in its filings that the options would “permit hedging, and allow for more liquidity, better price efficiency, and less volatility” in relation to the underlying funds.

Market analysts anticipate that the introduction of ETF options will attract more institutional investors and enhance market liquidity. The SEC’s decision aligns with its mandate to “prevent fraudulent and manipulative acts and practices” while promoting “a free and open market.”

The approval comes during a significant year for crypto investment vehicles, following the January launch of spot Bitcoin ETFs and amid ongoing considerations for spot Ethereum ETF applications. Trading dates for the newly approved options have not yet been announced.