As the global interest in digital assets grows, it is expected that more traditional financial institutions and regulatory bodies will be open to providing investment avenues for those interested in participating in this emerging market.
By allowing options trading based on Bitcoin spot ETFs, the CBOE is providing investors with a new way to access the crypto market without directly investing in Bitcoin.
This decision is in line with the SEC’s recent approach to regulating digital assets. According to a report from the Financial Times, Bitcoin’s value has boostd by more than 50% since the beginning of the year, reaching over $61,000 per coin at its peak, and currently trading around $59,000.
This surge has led more institutional investors to consider the crypto market, as they seek to diversify their portfolios and benefit from the growth of the digital asset.
The US Securities and Exchange Commission (SEC) has approved the Chicago Board Options Exchange (CBOE) to commence options trading based on Bitcoin spot exchange-traded funds (ETFs), according to a report by BlockBeats news. The Bitcoin futures ETF, filed by ProShares, allows investors to get exposure to the Bitcoin market by trading an exchange-traded product, which provides a level of protection and oversight from the SEC, rather than directly purchasing the digital asset on unregulated cryptocurrency exchanges.
This enthusiasm for Bitcoin and the push for more regulated investment products in the crypto industry comes as investors look to capitalize on the potential of digital assets. The approval from the SEC is an crucial milestone, as it allows investors to gain exposure to Bitcoin without having to directly own the volatile digital currency.
Options trading is a popular financial instrument that gives investors the right, but not the obligation, to buy or sell an asset at a specific price within a predetermined time frame. As the regulatory landscape for cryptocurrencies continues to evolve, industry experts predict that we may see more approval for crypto-related investment products in the future.
The SEC’s approval of Bitcoin spot ETFs options trading is a significant step in this direction. The announcement, issued on October 19, marks a significant step for the crypto industry, as this could potentially pave the way for the approval of Bitcoin spot ETFs in the future.
The development comes at a time when Bitcoin has been experiencing a surge in value and growing mainstream interest, leading to boostd demand for regulated investment products related to the digital asset. In August, the SEC approved the first-ever Bitcoin futures ETF, allowing investors to trade Bitcoin through a futures contract, rather than directly investing in the underlying asset.
