### SEC Grants Approval for Bitcoin Options ETFs on NYSE and CBOE

The United States Securities and Exchange Commission (SEC) has greenlit the listing of options for Bitcoin exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE). This significant regulatory advancement, approved on October 18, is expected to introduce much-needed liquidity into the Bitcoin markets.

With this approval, traders will now have access to options trading for 11 Bitcoin ETF providers listed on the NYSE. Among these are prominent names such as Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Franklin Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree's Bitcoin Fund, Grayscale's Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, BlackRock's iShares Bitcoin Trust ETF, and the Valkyrie Bitcoin Fund.

In addition, the CBOE has taken steps to facilitate the trading of Bitcoin ETF options by filing an application in August 2024 for a proposed rule change. This submission aims to place Bitcoin ETF options on the same footing as other commodity-based ETFs previously approved by the SEC for CBOE listing, although Grayscale's Bitcoin Mini Trust remains an exception.

Industry insiders anticipate that options trading for Bitcoin ETFs will not only enhance liquidity but could also act as a catalyst for driving Bitcoin prices higher. Jeff Park, an executive at Bitwise, highlights the significance of this development, pointing out that it represents a notable improvement over existing platforms like LedgerX and Deribit, which lack central guarantors. Park also noted the potential for options trading to trigger short squeezes, referencing the ability to influence large assets under substantial market pressures.

Furthermore, Tom Dunleavy, managing partner at MV Global, considers the introduction of options as a tool to mitigate Bitcoin's high volatility, thereby stabilizing the market in the long term.

The SEC's approval marks a significant milestone in the evolution of Bitcoin-related financial instruments, setting the stage for a more mature and liquid market environment.