The US securities regulator has granted accelerated approval for 11 exchange-traded funds (ETFs) to list and trade options tied to spot Bitcoin prices on the New York Stock Exchange, as noted in a regulatory filing. This approval follows the SEC’s decision in January to allow Bitcoin ETFs that track the cryptocurrency, marking a significant moment for both Bitcoin and the wider crypto industry.
Among the funds that received approval are the Fidelity Wise Origin Bitcoin Fund, the ARK21Shares Bitcoin ETF, the Invesco Galaxy Bitcoin ETF, the Grayscale Bitcoin Trust BTC, and the iShares Bitcoin Trust ETF.
These index options serve as listed derivatives, providing a quick and cost-effective means for institutional investors and traders to increase their exposure to Bitcoin. They also offer an alternative method for hedging against fluctuations in the value of the world’s largest cryptocurrency. Options allow holders the right to buy or sell an asset, such as a stock or ETF, at a predetermined price by a specified date.
Additionally, last month, the SEC approved the listing and trading of options for an exchange-traded fund managed by BlackRock on the Nasdaq, further indicating the growing acceptance of Bitcoin-related financial products.
