The U.S. Securities and Exchange Commission (SEC) has approved Nasdaq’s proposal to list and trade options on BlackRock’s iShares Bitcoin Trust (IBIT). The approval comes after an extensive review process that began on January 9, 2024, when Nasdaq first submitted its request to trade options on exchange-traded products (ETPs).
Nasdaq followed up with multiple amendments, refining its proposal for several months. After nearly eight months of review, the SEC approved, noting that Nasdaq even proposed rule modifications to facilitate the listing and trading of IBIT options.
According to the filing, options on IBIT will be physically settled and feature American-style exercise, with continued adherence to Nasdaq’s listing standards for ETFs. The exchange confirmed that these options will be subject to the same rules as other ETF options.
The SEC’s decision was met with enthusiasm from the crypto community. Prominent trader Ash Crypto called the move “ultra bullish,” while senior ETF analyst Eric Balchunas noted it could pave the way for further approvals, boosting liquidity in Bitcoin ETFs. However, Balchunas pointed out that this is only one stage of the process, as the proposal still requires approval from the OCC and CFTC before the official listing can proceed.
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