SEC Grants Approval for 11 Spot Bitcoin ETFs to Trade Options on NYSE

The US Securities and Exchange Commission (SEC) has granted accelerated approval to 11 exchange-traded funds (ETFs) for listing and trading options tied to spot Bitcoin prices on the New York Stock Exchange.

This decision follows a regulatory filing made public. In January, the SEC had approved Bitcoin ETFs to track the cryptocurrency’s value, marking a significant development for Bitcoin and the broader cryptocurrency market.

Bitcoin ETFs Offer Hedging Options

The approved funds include the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF, Grayscale Bitcoin Trust BTC, and iShares Bitcoin Trust ETF. These options will provide institutional investors and traders with an alternative way to hedge their exposure to Bitcoin.

Options are derivatives that allow the holder to buy or sell an asset, such as stocks or ETFs, at a predetermined price by a specific date. The SEC also recently approved options trading for BlackRock’s Bitcoin ETF.

ETF News: #SEC approves @NYSE and @CBOE options trading on spot #Bitcoin ETFs following @NasdaqExchange approval.https://t.co/DXU280xoFg pic.twitter.com/DdEDqkt1x7

Bitcoin ETFs Achieve Significant Inflows

In June, Finance Magnates reported that on their first day of trading, the Bitcoin ETFs experienced over $4 billion in inflows, setting a record for any ETF debut. Many individual funds continued to break records in the following weeks and months.

In the past 30 years, 5,535 ETFs have been launched, with the performance of the Bitcoin ETFs surpassing that of others. Within a month, Fidelity’s FBTC accumulated nearly $3.5 billion in assets under management, while BlackRock’s IBIT attracted over $4 billion.

In contrast, the first gold ETF gathered $1.2 billion in its first month, and BlackRock’s Climate Conscious Fund, launched in August 2023, previously held the record for fastest inflows, reaching $2.2 billion in its initial month.