NEWSLETTER
According to a recent filing, the U.S. Securities and Exchange Commission (SEC) has opened a comment period on Nasdaq's proposal to allow options trading on BlackRock's bitcoin spot ETF (exchange-traded fund). .
Options trading on BlackRock bitcoin ETF could happen before end of February: analyst
On Friday, January 19, the SEC recognized Nasdaq's proposal to list and trade options on BlackRock's bitcoin Spot ETF. The financial regulator sought public comments over a 21-day period on Nasdaq's application for options trading on BlackRock's iShares bitcoin Trust (IBIT).
A part of presentation read:
The Exchange proposes to amend Option 4, Section 3, Criteria for Underlying Securities, to allow the Exchange to list and trade options on the iShares bitcoin Trust (the “Trust”) as a Unit deemed appropriate for options trading on the Exchange.
For clarity, options are derivatives that give their holders the right to buy or sell an underlying asset at a predetermined price and time. While these financial instruments can be traded between individuals, they can also be traded on public exchanges as standardized contracts.
It is worth noting that Nasdaq is not the only exchange with a proposal to list and trade options on a bitcoin ETF. The Securities and Exchange Commission also opened a 21-day comment period on Cboe's request for options on ETPs containing bitcoin.
SEC acknowledges Cboe's proposal to list and trade options on bitcoin ETP | Source: James Seyffart/X
Bloomberg ETF expert James Seyffart has offered insight into the likelihood of spot bitcoin ETF options trading soon. The analyst acknowledged that the SEC is moving faster than expected on options proposals.
Seyffart said in a publish to platform:
The SEC has already acknowledged that 19b-4s request the ability to trade options on spot bitcoin ETFs. This is faster than the SEC usually acts. Could options be approved before the end of February if the SEC wants to act quickly?
BlackRock, the world's largest asset manager, recently received approval from the SEC to offer an exchange-traded fund that tracks the value of bitcoin. The company's iShares bitcoin Trust became the first btc spot ETF among nearly a dozen competitors to record more than $1 billion in inflows.
ethereum Spot ETF Delay?
While BlackRock's bitcoin spot ETF is off to a great start in the market, the trillion-dollar asset manager might have to wait a little longer to introduce an exchange-traded product containing ethereum, the second-largest cryptocurrency. big.
On Thursday, January 18, the SEC announced its decision to extend the review period for Fidelity's ethereum ETF application. According to the regulator, this extension will give them “sufficient time to consider the proposed rule change and the issues raised therein.”
Seyffart also commented on the recent delay of Fidelity's ethereum exchange-traded fund, saying it was “completely expected.” However, the Bloomberg Intelligence analyst pointed to late May as a critical period and a possible date for simultaneous SEC approval of multiple Ether ETFs, including BlackRock's.
bitcoin price at $41,599 on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from Getty Images, chart from TradingView
