Following the approval of options trading on BlackRock's bitcoin ETF on Nasdaq, it was only a matter of time until the United States Securities and Exchange Commission (SEC) cleared options trading on ETFs on other exchanges. On Friday, October 18, the commission allowed the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to offer trading options for several spot bitcoin ETFs.
Specifically, the NYSE received the green light to list and trade options for Grayscale bitcoin Trust (GBTC), Grayscale bitcoin Mini Trust btc (btc), and Bitwise bitcoin ETF (BITB). CBOE, on the other hand, can now offer trading options on the Fidelity Wise Origin bitcoin Fund (FBTC) and the ARK 21Shares bitcoin ETF (ARKB).
What does this mean for bitcoin ETFs?
In a recent report, QCP Capital revealed that this notable development could boost the growth of US bitcoin. ETF market improving liquidity. According to the trading firm, the exchanges' new ability to list and trade options will significantly increase capital inflows into bitcoin exchange-traded funds.
QCP wrote:
With this morning's approval by the SEC for btc ETF options to be listed on the NYSE, we believe this will provide the ETF with the liquidity needed to attract sustainable inflows.
ETF options will give investors the right, but not the obligation, to buy or sell an ETF at a predetermined price and time. This investment option allows investors to strengthen their exposure to an underlying asset while helping to protect against potential price fluctuations.
This latest round of approval for bitcoin ETF options trading comes at the perfect time for crypto products, which have been enjoying substantial attention from investors in recent weeks. According to data from SoSoValue, US bitcoin ETFs recorded total weekly inflows of over $2.13 billion, the highest weekly performance since mid-March.
With options trading about to go live for all crypto products, US bitcoin ETFs are sure to attract new investors, leading to higher demand and higher inflows. With sustainable ETF inflows, investors could see bitcoin price return to or surpass its March levels.
bitcoin price action
As of now, the price of bitcoin stands at around $68,180, reflecting a drop of just 0.2% in the last 24 hours. However, in the weekly period, the value of the flagship cryptocurrency has increased by more than 8%.
According to QCP, the upcoming US presidential election could strengthen investor appetite for risk assets like bitcoin. “This will drive risk assets higher and support our Uptober narrative,” the firm added.
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The price of bitcoin on the daily timeframe | Source: BTCUSDT chart on x/Cd7acIfG/" target="_blank" rel="noopener nofollow">TradingView
Featured image from Shutterstock, chart from TradingView
