The United States-based stock exchange Nasdaq is set to list options on BlackRock’s Bitcoin exchange-traded fund (ETF) as early as Tuesday, November 19, 2024, a Bloomberg report revealed. This move will enable investors and traders to speculate on bitcoin’s price actions using derivatives.
Spot Bitcoin ETF Options
On Monday, Alison Hennessy, head of ETP listings at Nasdaq, said on Bloomberg’s ETF IQ that BlackRock has been working with regulators for over 10 months to make this happen.
Notably, the Commodity Futures Trading Commission (CFTC) has issued a notice favorable for the matter, paving the way for BlackRock to launch its spot Bitcoin ETF options.
“Our intent at Nasdaq is to list and trade these options as early as tomorrow. Getting these options listed on IBIT into the market, I think, will be very exciting for investors because that’s really what we have heard from them,” Hennessey said.
Following Tuesday’s launch, investors can now bet on or against bitcoin using familiar financial instruments. This exposes them to the digital asset’s performance without directly holding it. The move signals growing institutional acceptance and may attract new investors, potentially boosting market growth.
Bloomberg Senior ETF analyst Eric Balchunas said, “These group of ETFs did not need this. They are successful on their own merit. But this is a pretty big tailwind to an already juggernaut situation. Options allow you have to express opinions on something with more specificity.”
Spot Bitcoin ETF Growth
Following its approval in the U.S. earlier this year, spot Bitcoin ETFs have made waves in the world’s financial market, crossing the boundaries of America as it gained approval across continents, including Asia and Australia.
Despite the wavering and unstable crypto market, U.S.-approved spot Bitcoin ETFs have taken in over $27 billion within its first ten months of operation. In the just-concluded business week, the market recorded an inflow of over $1.67 billion as the market moved upwards due to Republican Donald Trump’s election success.
BlackRock’s Bitcoin ETF, IBIT, has become the world’s largest crypto ETF, recording a net inflow of over $29.2 billion. It also led last week’s flow with a $1.89 billion intake.
