SEC Opens Public Feedback Phase for Proposal Enabling Options Trading

The Securities and Exchange Commission has invited public comments on Nasdaq’s proposal, which seeks to permit options trading on BlackRock’s spot bitcoin ETF. The comment period, as disclosed in a filing on Friday, is set to span 21 days.

SEC Opens Public Feedback Phase for Proposal Enabling Options Trading

According to the filing, “The Exchange proposes to amend Options 4, Section 3, Criteria for Underlying Securities, to allow the Exchange to list and trade options on iShares Bitcoin Trust (the ‘Trust’) as a Unit deemed appropriate for options trading on the Exchange.”

James Seyffart, Bloomberg Intelligence ETF research analyst, noted that the SEC is expediting the process compared to its usual pace. Seyffart commented on Friday in a post on X, saying, “The SEC has already acknowledged the 19b-4’s requesting the ability to trade options on spot #Bitcoin ETFs. This is faster than SEC typically moves. Options could be approved before end of February if SEC wants to move fast?”

BlackRock, having recently received SEC approval to list its spot bitcoin ETF, the iShares Bitcoin Trust, experienced a significant influx of $145.5 million in inflows on Thursday alone.

Explore Ethereum

Companies such as BlackRock and Fidelity are competing for approval of an Ethereum ETF. On Thursday, the SEC extended the deadline for deciding on Fidelity’s proposal until March 5.

Fidelity submitted an application for the Fidelity Ethereum Fund in November, citing a court ruling from the previous year. The ruling stated that the SEC had not provided a clear rationale for rejecting spot crypto ETFs while permitting futures-based products.