0
0
SEC Delays Decision on BlackRock’s iShares Bitcoin Trust Options Trading
The Securities and Exchange Commission has postponed its ruling on whether to permit options trading on BlackRock’s iShares Bitcoin Trust. According to a filing made on Wednesday, the top regulator of Wall Street has deemed it necessary to extend the timeframe for making a decision on the proposal from Nasdaq. The decision is now expected to be announced on April 24.
Additionally, the SEC has delayed its decision on a separate proposal from Cboe Exchange to list and trade options on spot bitcoin ETFs. This decision comes after the approval of 11 spot Bitcoin exchange-traded funds (ETFs) by the SEC in January, following years of applications being denied.
The recent surge in trading volume and inflows has prompted exchanges to consider offering options for traders to buy and sell on these products. Options provide the holder with the right to buy or sell an asset at a predetermined price by a specific date.
Crypto ETFs offer investors exposure to digital assets without the hassle of directly purchasing and storing the crypto themselves. Instead, investors can buy shares that reflect the underlying asset, while the fund manager handles the storage of the security or commodity.
Notably, BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a highly successful Bitcoin ETF, attracting significant inflows and rapidly increasing its share value compared to other products. On Tuesday, IBIT achieved a new record in daily trading volume, garnering nearly $3.8 billion.
Image/Photo credit: source url
