SEC Grants Accelerated Approval for 11 Bitcoin ETFs with Options Tied to Spot Prices

In a significant move for the cryptocurrency market, the U.S. Securities and Exchange Commission (SEC) has granted "accelerated approval" for 11 exchange-traded funds (ETFs) to list and trade options linked to spot bitcoin prices on the New York Stock Exchange. This development was disclosed in a regulatory filing and marks a key step in expanding institutional investment opportunities in bitcoin.

This decision builds on the SEC’s January approval of bitcoin ETFs, a breakthrough moment for both the cryptocurrency and the broader financial markets. Notable funds such as the Fidelity Wise Origin Bitcoin Fund (FBTC.Z), ARK21Shares Bitcoin ETF, Invesco Galaxy Bitcoin ETF (BTCO.Z), and the Grayscale Bitcoin Trust BTC (GBTC.P) were among those granted approval last Friday.

These bitcoin index options offer institutional investors and traders a new avenue to manage their exposure to bitcoin. As listed derivatives, options allow the holder the right to buy or sell an asset at a predetermined price before a specific date, providing a cost-effective and strategic way to hedge against market volatility.

The SEC's approval follows last month’s decision to permit the listing and trading of options for asset manager BlackRock’s (BLK.N) bitcoin ETF on Nasdaq. This growing trend of integrating bitcoin options into mainstream financial products demonstrates the increasing acceptance and maturity of cryptocurrencies in traditional markets.