The U.S. SEC approves the option of BlackRock Bitcoin ETF listing on NASDAQ

The U.S. Securities and Exchange Commission (SEC) has approved a rule change allowing the Nasdaq International Securities Exchange to list and trade options on BlackRock's spot Bitcoin ETF, iShares Bitcoin Trust (IBIT). This decision marks another step in expanding the range of Bitcoin-related derivatives, providing investors with additional tools to manage exposure to the world's largest cryptocurrency.

Since regulators approved several Bitcoin-related ETFs in the United States, BlackRock has been seeking approval for such listings since at least March this year. The SEC's approval came after several amendments submitted by Nasdaq ISE aimed at addressing concerns about manipulation and excessive risk-taking in the emerging crypto options market.

IBIT options will be physically settled and use American-style exercise methods, offering hedging services for investors seeking to manage bitcoin-related risks. Despite receiving approval, however, the SEC's move still stems from ongoing concerns about potential risks of cryptocurrency derivatives. Comment letters submitted during the review process highlighted worries about market volatility as well as broader integration of cryptocurrencies with traditional financial markets. Some urged the SEC to delay approval until further stabilization of bitcoin markets occurs. Regardless, The U.S. Securities and Exchange Commission found that exchange surveillance mechanisms including real-time monitoring and cross-market sharing agreements with Chicago Mercantile Exchange are sufficient to prevent manipulation.