NYSE Files 19b-4 Form To Allow Options Trading For Bitcoin ETF
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Supporting Listing And Trading Of Options
In a recent filing with the US Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE) seeks approval to offer options trading. The document requests permission to list and trade options linked with “Commodity-Based Trust Shares,” a strategy that spot Bitcoin ETFs issuers adopted.
Henry Jim, a Bloomberg ETF Intelligence expert, stated that the SEC’s anticipated clearance of this application is an important milestone as it marks the beginning of the prospect of a regulated trading pathway for options on the NYSE platform. The expert noted that a diverse range of traders stand to benefit from this new development.
The Bloomberg expert believes the filing can open new investment options for the participants. Given the asset’s inherent volatility, Eric Balchunas, a senior ETF analyst at Bloomberg, believes introducing options trading will significantly boost investments in spot Bitcoin ETFs.
Balchunas stresses the expected popularity of options trading within Bitcoin ETFs, citing the product’s ability to capitalize on enormous market shifts efficiently.
A New Era Of Regulated Bitcoin Trading
The green light by the SEC for Bitcoin ETF in early January marks a historic turning point for the cryptocurrency industry, ushering in a new period of global regulated trading. This regulatory go-ahead was great news to big Wall Street firms such as BlackRock and Fidelity, which have strategically created Bitcoin-related products geared to investors’ varying demands.
These offerings cater to institutional investors previously barred from accessing the Bitcoin market. Spot Bitcoin ETFs have performed admirably following this regulatory breakthrough, with total trading volumes exceeding $10 billion within the first three days of launch.
This rush in activity indicates investors’ pent-up demand and interest in a regulated outlet to gain exposure to Bitcoin. The SEC’s approval has established the legitimacy of crypto investment and opened the door for a broader range of players to actively participate in the market. A side benefit of this approval is that it has bolstered Bitcoin’s wider adoption within the traditional financial circles.
Expected Rise In Trading Volume And Bitcoin Price Consolidation
Once the NYSE allows options trading on Bitcoin ETFs, this crypto product will significantly appeal to a more varied investor base. Meanwhile, Balchunas notes that the prospective approval process for this 19b-4 file is projected to last two months.
Despite the optimism from industry analysts, the SEC hasn’t decided yet on this application. If the regulator reviews and subsequently approves the NYSE’s proposal, it could accelerate the growth of the Bitcoin derivatives market and increase trading volumes.
Such a development will likely influence the trajectory of Bitcoin investment, giving investors new ways to explore this market. Nevertheless, the Bitcoin price chart indicates that the leading digital asset is still in a consolidation phase, based on the candlestick pattern on the daily trading chart.
The digital currency currently trades at $42,432 per Coingecko data, with its next crucial support level at $41,800. Despite the positive feeling among traders, BTC needs to break through the immediate resistance level to substantiate their optimism. In contrast, a drop below $41,500 may spark a sell-off, sending prices back to $40,000 or even lower.
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