TECH TUESDAY is a weekly content series covering all aspects of capital markets technology. TECH TUESDAY is produced in collaboration with Nasdaq.
Last week marked another significant advancement in the integration of digital assets into mainstream finance.
On Friday, September 20, the U.S. Securities and Exchange Commission approved Nasdaq’s filing for options on iShares Bitcoin Trust ETF (IBIT), the first approval of its kind for options on a spot Bitcoin ETF.
“We are pleased with the SEC’s approval of IBIT options,” said Sean Feeney, Head of US Options at Nasdaq. “We believe that the ability to list and trade options on IBIT will benefit and protect investors, providing them with an additional, lower-cost risk management tool for exposure to spot bitcoin in their portfolios.”
Back in January, the digital assets industry reached a milestone when the U.S. Securities and Exchange Commission approved the listing and trading of spot bitcoin exchange-traded funds (ETFs).
The long-awaited regulatory approval enabled U.S. investors to access bitcoin via established and transparent investment vehicles that trade on regulated exchanges.
Since then, volumes in bitcoin ETFs have soared. For example, since IBIT commenced trading on Nasdaq on January 11, the security is now the world’s largest and most liquid bitcoin ETF, with over $22B in AUM and trading over 25 million shares a day*.
SEC approval is the first step to getting IBIT options listed and trading. Nasdaq continues to work with the industry for the remaining regulatory approvals as quickly as possible.
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*All data as of 9/20/24
