The United States Securities and Exchange Commission (SEC) has granted Nasdaq permission to list and trade options for BlackRock's spot Bitcoin exchange-traded fund (ETF). This breakthrough announcement marks a significant milestone in the industry as the SEC has approved options trading for the iShares Bitcoin Trust (IBIT) under the ticker symbol IBIT on Nasdaq. According to the SEC notice, options on the IBIT ETF will be subject to the same rules as other ETF options and will be physically settled with American-style exercise.

The trading volume for the IBIT Bitcoin ETF surged past $875 million on August 5th, with total spot Bitcoin investment vehicles exceeding $1.3 billion. The approval by the SEC for options trading on the Bitcoin ETF is a pivotal step in the journey towards expanding cryptocurrency investment opportunities within the US market. Analysts, including Bloomberg's ETF analyst, Eric Balchunas, anticipate that more offerings related to cryptocurrency ETFs will likely receive approval from regulatory bodies such as the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) in the near future.

Nasdaq is also seeking approval from the SEC to introduce options trading for spot Ethereum ETFs on the exchange, further diversifying the range of digital asset investment products available to investors. This development underscores the growing interest and demand for cryptocurrency-based financial instruments and the importance of regulatory approvals to facilitate their integration into traditional financial markets. As the story continues to evolve, updates on further regulatory decisions and market developments surrounding cryptocurrency ETFs will be closely monitored.