The U.S. Securities and Exchange Commission has approved options trading for asset manager BlackRock's (BLK) spot Bitcoin (BTC) exchange-traded fund (ETF).
Options trading for BlackRock's iShares Bitcoin Trust (IBIT) is now set to begin on the Nasdaq exchange where it trades.
Options give people the right to buy or sell an asset, such as a stock or ETF, at a pre-determined price by a set date.
Additionally, options provide a quick and inexpensive way for traders and investors to amplify and hedge their exposure to Bitcoin, the biggest cryptocurrency by market cap.
This is the first time that the SEC, Wall Street’s regulator, has approved the trading of options tied to a Bitcoin ETF.
Analysts say enabling options trading is another positive step forward for cryptocurrencies, and a sign of the growing legitimacy of digital coins and tokens.
Spot Bitcoin ETFs were approved for trading by the SEC in January of this year.
Asset managers such as BlackRock began applying for options on their spot Bitcoin ETFs as soon as the SEC approved them in January.
Bitcoin is currently trading at $63,000 U.S., up 42% on the year.
