Nasdaq and Cboe, two of the largest exchanges in the United States, have taken significant steps to deepen the integration of Bitcoin into the traditional financial world. By submitting proposals to the Securities and Exchange Commission (SEC) on January 19th to offer Bitcoin ETF trading options, they mark a key development in cryptocurrency trading.
Details of Nasdaq and Cboe’s proposals
Nasdaq has filed a rule change request to list and trade options on BlackRock’s iShares Bitcoin Trust, while Cboe has applied to trade options on exchange products holding Bitcoin. These requests come shortly after the successful launch of Bitcoin ETF Spot on these platforms on January 11th.
According to Catherine Clay, Executive Vice President of Cboe, options represent the “next logical step” for Bitcoin ETFs. They would add utility and help mitigate the risks associated with these products. Nasdaq highlights in its request that options would offer cost efficiencies and new hedging strategies.
Analysts’ perspectives and regulatory process
Cboe has already submitted its request and is awaiting regulatory response, while Bloomberg ETF analyst James Seyffart notes the unusual speed of the SEC’s response and suggests potential approval of trading options before the end of February.
