Nasdaq’s Historic Approval to Trade Options on BlackRock’s iShares Bitcoin Trust

The U.S. Securities and Exchange Commission (SEC) has officially granted approval for Nasdaq to list and trade options on BlackRock’s iShares Bitcoin Trust (IBIT). This landmark decision marks a significant step forward in the integration of cryptocurrency into mainstream financial markets.

Details outlined in the official filing made on September 20 reveal that the approval process was extensive and began on January 9, 2024. This was the date when Nasdaq first submitted its proposal to trade options on exchange-traded products (ETPs), specifically targeting the burgeoning Bitcoin market.

Throughout this period, Nasdaq diligently followed up on its original proposal, making multiple amendments starting as early as January 11, 2024. Over the subsequent months, the exchange provided further revisions and supplementary information regarding IBIT and other Bitcoin-based ETPs in response to the SEC’s requests.

Multiple Stages of Review by the SEC

After nearly eight months of intensive review, the SEC ultimately gave Nasdaq the green light to implement its proposal. The commission acknowledged that Nasdaq had not only presented a thorough case but had also proposed modifications to its own rules to facilitate listings and trading of options on IBIT.

An important aspect of the filing specifies that options on IBIT will be physically settled and will function under an American-style exercise format. Nasdaq also ensured that the options will comply with the exchange’s established continued listing standards.

“Options on IBIT will be subject to the Exchange rules that currently apply to the listing and trading of all ETF options on the Exchange,” the filing states.

Optimism in the Crypto Community Following SEC Approval

In response to the SEC’s decision, notable crypto traders and analysts have expressed their optimism on social media platform X. One prominent trader, Ash Crypto, referred to the approval as “ultra bullish,” reflecting the sentiment of many in the cryptocurrency sphere.

Senior ETF analyst Eric Balchunas also chimed in, discussing the implications of this approval on X. He indicated that the approval is just the beginning and shared his expectation that more applications would see swift approval in the near future.