SEC Approves BlackRock’s Bitcoin ETF Options Trading on Nasdaq

The U.S. Securities and Exchange Commission (SEC) has authorized BlackRock to offer options trading on spot Bitcoin ETFs, marking a key milestone in expanding crypto investment products.

This approval allows Nasdaq to list and enable options trading for BlackRock’s iShares BTC Trust under the ticker symbol IBIT, adding a new dimension to the growing Bitcoin ETF market since its debut in January 2024.

The SEC’s announcement on September 20 confirmed that options trading on the iShares BTC Trust will be available through Nasdaq, following the same regulatory framework as other ETF options.

Options contracts give investors the choice, but not the requirement, to buy or sell an underlying asset at a set price within a certain timeframe.

According to the SEC, IBIT options will settle physically and follow U.S.-style exercise, which means investors can act on their options at any time before they expire. The asset must meet specific criteria such as being widely held and actively traded, ensuring market stability as per regulatory standards.