(Reuters) – The U.S. Securities and Exchange Commission has approved the listing and trading of options on a bitcoin-based exchange-traded fund owned by asset manager BlackRock (NYSE:) on the Nasdaq Stock Exchange.
Options trading for BlackRock’s iShares Trust has been approved under the symbol “IBIT,” the regulator said in a notice on Friday.
Index options – listed derivatives offering a quick and inexpensive way to augment bitcoin exposure – on the bitcoin index would provide institutional investors and traders with an alternative way to hedge their exposure to the world’s largest cryptocurrency.
The approval of the listing and trading of options linked to a bitcoin-backed ETF is another positive step for cryptocurrencies, once considered a fresh asset class.
Cryptocurrencies have become more popular since the launch of Bitcoin-based ETFs earlier this year.
Options give their holders the right to buy or sell an asset, such as a stock or publicly traded product, at a predetermined price and at a set time.
Exchanges began filing applications for spot options on bitcoin ETFs as soon as it became clear that the SEC would approve the underlying ETFs in January.
The SEC is overseeing changes to technical rules that exchanges must implement to list options. The regulator also said its existing oversight procedures would apply to IBIT options.
