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Options trading on BlackRock’s iShares spot Bitcoin ETF (IBIT) goes live on Nasdaq.
The development provides Wall Street investors with leveraged exposure to the world’s largest cryptocurrency by market cap.
OCC Confirms BlackRock Options Listing
Nasdaq’s listing of IBIT options comes several hours after the Options Clearing Corporation (OCC) provided an update for the new listing.
Last month, the U.S. SEC approved the 11 Bitcoin ETFs, including BlackRock’s IBIT, for options trading. Yesterday, the OCC released a memo confirming its readiness for the clearance and settlement of the product, beginning with IBIT.
Furthermore, Allison Hennessey, Nasdaq’s head of ETP listings, informed Bloomberg’s ETF analyst Eric Balchunas of the exchange’s plans to list and trade IBIT options today, on November 19. Hours after the announcement, BlackRock’s Bitcoin ETF options launched on Nasdaq, giving investors the right to trade IBIT shares at a specified price.
Significance of Bitcoin ETF Options
The move is expected to significantly impact Bitcoin, boosting the asset’s institutional adoption and price outlook.
Moreover, Joe Consorti, head of growth at Theya, asserted that the Bitcoin ETF options mark a key development in the derivatives markets, noting that financial derivatives for traditional assets often surpass the size of the underlying market cap by 10-20x.
Consorti shared this view in a video making the rounds on X today. According to the Theya executive, the Bitcoin derivatives market has not seen much success like its spot counterpart, representing less than 1% of the $1.8 trillion BTC spot market cap.
Integrating Bitcoin into the Global Capital Market
Furthermore, he stated that Bitcoin derivatives trading usually occurs offshore on platforms like Deribit. However, due to regulatory issues, U.S. investors are prohibited from using this platform.
With IBIT options going live on Nasdaq, Consorti believes the move could potentially integrate Bitcoin into the global capital market, enhancing market maturity and unlocking vast liquidity.
Spot Bitcoin ETFs have made massive progress since their debut in January 2024. Data from Farside Investors confirms that the ETF market boasts an inflow of $27.71 billion as of today, with BlackRock’s IBIT attracting a positive capital flow of $29.36 billion alone.