CDS Crypto News SEC Greenlights BlackRock ETF Options with Position Caps Amid Volatility Concerns
Crypto News

SEC Greenlights BlackRock ETF Options with Position Caps Amid Volatility Concerns

87
SEC Greenlights BlackRock ETF Options with Position Caps Amid Volatility Concerns

Nasdaq to List Bitcoin Options Linked to BlackRock ETF After SEC Clearance

Nasdaq to List Bitcoin Options Linked to BlackRock ETF After SEC Clearance

A regulation modification that permits Nasdaq’s International Securities Exchange to list and trade options on BlackRock’s widely traded exchange-traded fund, the iShares Bitcoin Trust (IBIT), has been authorized by the U.S. Securities and Exchange Commission. Extending the selection of derivative products associated with Bitcoin has given investors more options to control their exposure to the biggest cryptocurrency in the world.

Since at least March of this year, when the SEC approved several Bitcoin-linked exchange-traded funds (ETFs) in the United States, BlackRock has been requesting clearance for such a listing. After Nasdaq ISE made a number of changes to address concerns about market manipulation and excessive risk-taking in the emerging cryptocurrency options market, the SEC approved the changes.

SEC Sets 25,000 Contract Limit on BlackRock’s Bitcoin ETF Options Amid Derivatives Concerns

SEC filing documents reveal that a significant revision places position and exercise restrictions for options on IBIT at 25,000 contracts. IBIT options will include American-style exercise and physical settlement, providing investors with a hedge against Bitcoin-related risk.

Since its inception earlier this year, BlackRock‘s ETF has drawn much interest from institutional and retail investors alike, tracking the price of Bitcoin and emerging as one of the most liquid Bitcoin-related products on the American market. Notwithstanding the clearance, the SEC’s action is a response to persistent worries about the possible dangers of cryptocurrency derivatives. Concerns about increased market volatility and the spread of cryptocurrency into conventional financial markets were raised in comment letters that were filed throughout the review process.

For more up-to-date crypto news, you can follow Crypto Data Space.

SEC Greenlights BlackRock ETF Options with Position Caps Amid Volatility Concerns
Written by
lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

USDG Stablecoin: Paxos Teams Up with Robinhood, Kraken, and Galaxy Digital

Paxos has launched the USDG stablecoin, backed by major financial firms like...

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Ethereum White Paper Anniversary: From Concept to Global Smart Contract Platform

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Bitcoin Liquidations Spike: Over $150M in Longs Wiped Out as Price Slides

Memecoins Explained: The Intersection of Internet Culture and Crypto

Binance Research's report analyzes the rise of memecoins, highlighting their cultural impact,...