Catenaa, Wednesday, November 20, 2024- Options trading for BlackRock’s iShares Bitcoin Trust (IBIT) is set to begin today on Nasdaq, with Bitwise Bitcoin ETF options scheduled to follow on Wednesday.
This significant milestone is expected to amplify institutional interest in cryptocurrency markets, as options trading for Bitcoin exchange-traded funds (ETFs) becomes a reality.
The US Securities and Exchange Commission (SEC) approved options for spot Bitcoin ETFs earlier this year, a move anticipated to deepen market engagement.
Options contracts grant the holder the right, but not the obligation, to buy or sell an underlying asset—Bitcoin ETFs in this case—at a set price within a specified period.
Bitwise Invest CEO Hunter Horsley confirmed the development, stating that options on the Bitwise Bitcoin ETF will commence trading on Wednesday.
BITB recently recorded $115 million in trading volume and boasts an asset under management (AUM) of nearly $4 billion. Bloomberg analyst James Seyffart also noted that other Bitcoin ETFs are expected to join the options market soon.
In related news, Bitcoin spot ETFs have seen robust inflows. BlackRock’s IBIT attracted $89.3 million on November 18, pushing total inflows to $29.37 billion. Across the market, spot ETFs reported net inflows of $255 million, representing 5.3% of Bitcoin’s total market value.
The launch of options trading is poised to mark a new phase in Bitcoin’s institutional adoption, solidifying its position as a mainstream financial asset.
