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.
This article was written by Tareq Sikder at www.financemagnates.com.
