The New York Stock Exchange (NYSE) has filed a 19b-4 form with the United States Securities and Exchange Commission (SEC) to allow for the listing and trading of options on “Commodity-Based Trust Shares,” a format utilized by issuers of some of the newly approved spot Bitcoin ETFs.
NYSE Files For Options Trading With The US SEC
In a post on X, Henry Jim, a Bloomberg ETF Intelligence team member, said the filing is a significant step for spotting Bitcoin ETFs and the broader crypto market. If the SEC approves this filing, it will allow for a regulated way for trading options via the NYSE, further opening up new investment opportunities for traders, both retail and institutions, focused on Bitcoin.
Eric Balchunas, a senior ETF analyst at Bloomberg, echoed Jim’s sentiment, noting that options trading is likely to be a “big hit” for spot Bitcoin ETFs due to their inherent volatility. In trading circles, options allow traders to hedge their positions. However, through this product, they can also speculate on price movements and even gain exposure to Bitcoin in a calculated manner.
The US SEC’s approval of spot Bitcoin ETFs in early January marked a watershed moment for the industry, paving the way for regulated trading on global exchanges. Following this approval, big Wall Street players, including BlackRock and Fidelity, have curated Bitcoin products to serve a spectrum of investors, including institutional players previously excluded from gaining exposure. Records show that spot Bitcoin ETFs have cumulatively recorded over $10 billion in three days.
Trading Volume Might Rise, Bitcoin Prices Are Consolidating
With the NYSE’s filing, the path for options trading on these ETFs is clear, further enhancing their appeal to a broader range of investors. Balchunas notes that the earliest approval for this 19b-4 filing should be around two months.
How the SEC will react to this application remains to be seen. However, if they consider the filing and approve the NYSE’s request, it could further fuel the growth of the Bitcoin derivatives market and drive higher trading volumes.
Bitcoin prices continue to consolidate when writing, looking at the candlestick arrangement in the daily chart. The coin is capped to the upsides at around $43,500 while support remains at $41,800. Though traders are bullish, any breakout above the immediate liquidation level will confirm their bias. If not, losses below $41,500 might trigger a sell-off, driving prices back to $40,000 or lower.
Feature image from Canva, chart from TradingView