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SEC Approves Bitcoin ETF Options on BlackRock's IBIT

The SEC lets investors get more creative with their Wall Street bitcoin bets.

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On Friday, the SEC approved Nasdaq ISE’s request to list options on BlackRock’s iShares Bitcoin Bitcoin Trust (IBIT), expanding Bitcoin-related products.

What's the Scoop?

  • Conservative Limits: The size for options on IBIT will be capped at 25K contracts to mitigate risks.
  • Surveillance Measures Approved: Despite concerns, the SEC concluded that the Nasdaq’s surveillance systems, including real-time tracking and cooperation with other exchanges, would effectively prevent market manipulation.
  • CFTC Sign-Off Still Required: Before these options actually become listed, they must also be approved by the CFTC, which has no deadline for when to approve them.

Bankless Take:

The SEC’s approval of Bitcoin options ETFs starts us down the path to further expanding Bitcoin’s total market. Right now, trading Bitcoin futures and options is mainly limited to offshore platforms or OTC (over-the-counter) markets, which many people can’t access. With U.S.-listed options ETFs, more people, including U.S. retail investors and large institutions, could get involved, fueling Bitcoin’s growth with tools for better risk management and improved efficiency, similar to how the oil market grew when futures and options were approved.


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David C

Written by David C

369 Articles • View all      

David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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