The US Securities and Exchange Commission (SEC) has sanctioned options trading on BlackRock’s iShares Bitcoin Trust (IBIT), offering investors a novel instrument for hedging and mitigating risks associated with Bitcoin’s valuation.
The options will function comparably to existing ETF options traded on US markets and will be subject to rigorous surveillance and control.
Significant modifications in the clearance procedure encompass conservative stances and exercise limitations, restricting options to 25,000 contracts, alongside anti-manipulation strategies such as real-time pattern monitoring and post-trade oversight.
This improved regulatory structure is essential due to Bitcoin’s volatility, which continues to be a concern for investors and authorities. The approval process commenced on January 9, 2024, when Nasdaq ISE submitted a petition to list and trade options on BlackRock’s Spot Bitcoin ETF.
The authorization of options trading on BlackRock’s Spot Bitcoin ETF signifies a crucial advancement in the development of cryptocurrency, providing institutions with enhanced instruments to hedge and manage Bitcoin risk.
