The US Securities and Exchange Commission (SEC) has approved a rule change allowing the NYSE and CBOE to offer options trading for various spot Bitcoin ETFs. This significant decision is happening amid strong weekly inflows into Bitcoin ETFs, reaching their best performance in about seven months.
The SEC's approval lets both exchanges list options for spot ETF products. However, CBOE’s approval does not include Grayscale's Bitcoin Mini Trust. This regulatory move is anticipated to broaden access to crypto-related financial products in the US, increasing liquidity around Bitcoin ETFs and attracting more market participants.
Jeff Park from Bitwise emphasizes the advantages of ETF options over existing BTC options, like cross-margining with assets such as GLD. These derivatives provide USD holders a way to hedge against Bitcoin exposure, potentially reducing volatility.
The SEC’s approval coincides with a remarkable inflow week for Bitcoin ETFs. According to SoSoValue, these ETFs collectively accumulated over $2 billion, extending their streak to six consecutive days. Total net inflows have now reached $21 billion, demonstrating strong investor demand.
Nate Geraci from the ETF Store underscores the sustained momentum, noting robust retail and institutional interest in Bitcoin ETFs. At this pace, he suggests that BTC ETFs could surpass Gold ETFs in market size within the next two years.
