SEC Approves Options Trading on BlackRock’s Spot Bitcoin ETF IBIT

The SEC highlighted that this approval would allow investors to hedge their positions on Bitcoin, using the options market to mitigate the inherent volatility of BTC. The iShares Bitcoin Trust has been the most liquid spot Bitcoin ETF, which helped meet the requirements for trading options. The SEC also emphasized that extensive surveillance mechanisms would be in place to monitor potential market manipulation and ensure orderly trading.

"IBIT is the most liquid spot Bitcoin ETF and the 11th most liquid ETF in the U.S. by average volume (34,825,921 shares) and 18th largest by average notional ($1,246,060,738)," stated the SEC. "As of May 22, 2023, IBIT had approximately 193,956 shareholders."

This approval by the SEC continues the trend of expanding regulated financial products based on Bitcoin, pushing it closer to full integration within the global financial system. The ability to trade options on a spot Bitcoin ETF provides new opportunities for institutional investors who wish to engage with the Bitcoin market while maintaining a higher level of risk management.

https://bitcoinmagazine.com/markets/sec-approves-options-trading-on-blackrocks-spot-bitcoin-etf-ibit