- The SEC has approved Nasdaq’s listing and trading of options for BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), under the ticker symbol IBIT.
- Options are physically settled in Bitcoin.
- Bitcoin’s price reacted positively to the news, nearly reaching US$64,000.
- Market observers and institutional investors like Michael Saylor believe the approval is bullish for the market.
The US Securities and Exchange Commission (SEC) has approved Nasdaq’s listing and trading of options on BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT).
The options, trading under the ticker symbol IBIT, will be physically settled, allowing investors to receive actual Bitcoin upon exercise.
“Options on IBIT will be physically settled with American-style exercise. The Exchange stated that options on IBIT will be subject to the Exchange’s respective initial and continued listing standards,” the press release reads.
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Bullish on Bitcoin?
While it’s too early to know how this will affect the market, Bitcoin’s price reacted positively to the news.
In the last 24 hours, Bitcoin nearly touched the US$64K (AU$93K) level, currently trading at US$63,818 (AU$93,585). This represents a 1.5% increase from yesterday and a 9.2% surge in the last seven days, as per data from CoinGecko.
Attracting More Big Fish
Most in the crypto community believe this will be a bullish development for Bitcoin. Market observers believe this approval represents a significant move toward integrating BTC into mainstream finance, with Nasdaq applying the same rules to BTC ETF options as it does to other ETF options.
However, it’s unclear if other exchanges will gain similar approval, but Bloomberg’s Eric Balchunas expects more approvals soon —pending further authorisation from the OCC and CFTC.
Moreover, Neil Jacobs, co-founder of Fomo21, explained how the approval of options on the BlackRock Bitcoin ETF is “extremely” bullish for Bitcoin, though he expects volatility at first as new participants “test the waters” before options help stabilise the market due to better price discovery and hedging strategies.
Many people in the crypto community expressed concern that, with Wall Street in the picture, there will be a trade-off in swing trades, but this applies both to the upside and downside as well, as Jacobs stated.
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In conclusion, the crypto community is expecting one of two things: fewer dips but smaller gains, or massive BTC accumulation followed by institutional sell-off.
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