Bitrabo Editorial
After the Nasdaq granted approval for options trading on BlackRock’s Bitcoin exchange-traded fund (ETF), it was anticipated that the U.S. Securities and Exchange Commission (SEC) would soon follow suit for other exchanges. On October 18, the SEC authorized options trading for several spot Bitcoin ETFs on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).
Specifically, the NYSE is allowed to list options for the Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust BTC (BTC), and Bitwise Bitcoin ETF (BITB). Meanwhile, the CBOE can now offer options trading on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).
Implications for Bitcoin ETFs
A recent report from QCP Capital indicates that this significant development might enhance the growth of the U.S. Bitcoin ETF market by increasing liquidity. The trading firm suggests that the ability of exchanges to list options will attract more capital to Bitcoin ETFs.
According to QCP:
The SEC’s approval for Bitcoin ETF options on the NYSE will boost the ETF’s liquidity and enhance its appeal for sustainable investment inflows.
With ETF options, investors can choose to buy or sell an ETF at a set price within a specified time, providing a way to increase their exposure to an asset while protecting against price swings.
This approval for Bitcoin ETF options trading arrives at a time when crypto products are gaining considerable interest from investors. Recent data from SoSoValue shows that U.S. Bitcoin ETFs experienced total weekly inflows exceeding $2.13 billion, marking the highest level since mid-March.
The imminent launch of options trading is expected to draw new investors to U.S. Bitcoin ETFs, potentially increasing demand and inflows. If these inflows remain strong, Bitcoin’s price might rebound to or exceed its values from March.
Current Bitcoin Price Trends
Currently, Bitcoin’s price is approximately $68,180, reflecting a slight 0.2% decrease over the last 24 hours, although it has risen more than 8% over the past week.
QCP believes that the upcoming U.S. presidential elections may boost investor interest in riskier assets such as Bitcoin. “This will drive up risk assets and support our Uptober outlook,” the firm stated.