The United States Securities and Exchange Commission (SEC) has made a groundbreaking move by approving the listing of the highly anticipated BlackRock spot Bitcoin Exchange Traded Fund (ETF), iShares Bitcoin Trust (IBIT) options on Nasdaq. This latest development allows option traders to easily buy or sell IBIT options contracts, opening up new avenues for investment and risk management in the cryptocurrency market.
IBIT Options Settlement
According to a report, the exchange stated that options on IBIT would provide investors with essential hedging and risk management tools. These tools are designed to manage exposure to the price of Bitcoin and Bitcoin-related products and positions. The report further elaborated, “Options on IBIT will be physically settled with American-style exercise.” Nasdaq added that these options will trade in the same manner as other exchange-traded fund (ETF) options and will be subject to the Exchange’s rules.
Listing Standards for IBIT Options
Furthermore, Nasdaq has highlighted that options on IBIT traded on their exchange must meet specific listing standards. These standards are in place to protect investors and ensure a stable trading environment. The report stated, “The Exchange’s initial listing standards require, among other things, that the security underlying a listed option be characterized by a substantial number of outstanding shares that are widely held and actively traded.”
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