Nasdaq could kick off options trading for spot bitcoin ETFs as soon as Tuesday, marking a significant step forward for institutional adoption in the crypto market.
“We’re ready to list these options tomorrow,” Alison Hennessy, Nasdaq’s head of ETP listings, told Bloomberg TV. “Investors have been eager for this opportunity, and it’s exciting to bring this product to market.”
Currently, BlackRock’s iShares Bitcoin Trust (IBIT) is the sole U.S.-based spot bitcoin ETF on Nasdaq, making it the first eligible for options trading. Other spot bitcoin ETFs listed on exchanges like NYSE and Cboe are expected to follow in the days ahead.
Options are derivative contracts granting investors the right, but not the obligation, to buy or sell the underlying ETF at a fixed price within a set time frame. These tools are valued for enabling both speculative strategies and precise risk management.
The SEC cleared IBIT for options trading earlier this year and has since approved the frameworks for additional exchanges.
“This could happen in the next day or two,” said James Seyffart, an ETF analyst at Bloomberg Intelligence. “All necessary approvals are in place, and it’s now just about execution.”
The rollout of options is expected to enhance institutional engagement with bitcoin ETFs, allowing for greater flexibility in trading and hedging strategies. However, analysts are watching closely to assess the potential impact of increased leverage and hedging activity on bitcoin’s price behavior.
