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Options trading for spot bitcoin ETFs may increase after a nod from the Securities and Exchange Commission allowed multiple “non-equity commodity” funds to list on US exchanges.
Nasdaq filed 19b-4 filings with the SEC to amend listing rules that allow derivatives trading on bitcoin (btc)-backed ETFs.
Following the proposed rule changes, the SECOND has acknowledged the requests, opening a 21-day window for public comments and opinions. ETF expert James Seyffart opined that the SEC could make a decision on these filings by the end of February; However, the verdict could also be delayed until September.
The SEC typically doesn't respond that quickly to these types of requests, according to Seyffart. noted in X.
Options on btc spot ETFs could unlock another channel for investors to access bitcoin exposure. These derivatives allow traders to speculate or hedge against volatility, a market phenomenon closely associated with cryptocurrencies and other risky assets.
If approved, the options would join the swath of bitcoin-related products that entered the markets shortly after btc spot ETFs were approved. Financial products provider Direxion has already filed for five leveraged spot bitcoin ETFs.
The growing interest in crypto ETFs has also spread beyond US soil, with Hong Kong regulators and institutions preparing to launch similar products in the first quarter of this year. Watchdogs in Singapore and South Korea have warned against spot btc funds, although officials may push for a different opinion.
South Korea's presidential office implored local regulatory agencies to reevaluate their crypto stance amid growing demand for btc-related investment vehicles.
