U.S. Securities and Exchange Commission just approved approval BlackRock has a spot Bitcoin ETF called the iShares Bitcoin Trust, which is available for trading and listing.
Physical settlement means that the iShares Bitcoin Trust options approved will deliver Bitcoin to complete the contract when exercised. The American style options allow traders to exercise them at any point before expiration, giving flexibility. The SEC has stated that the options will be listed under the same conditions as other ETFs, including margin and position requirements.
“I’m assuming others will be approved in short order,” said Bloomberg Senior ETF Analyst Eric Balchunas. “Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish). This is nice surprise re timing but not a shocker as James Seyffart and I gave 70% odds of approval by end of May.”
SEC stated this would enable investors to hedge positions in Bitcoin by using options to minimize the volatility. The iShares Bitcoin Trust is the most liquid Bitcoin ETF spot, and this helped to meet the trading requirements. SEC emphasized the importance of putting in place extensive monitoring mechanisms to ensure that there is no market manipulation.
“IBIT is the most liquid spot Bitcoin ETF and the 11th most liquid ETF in the U.S. by average volume (34,825,921 shares) and 18th largest by average notional ($1,246,060,738),” The SEC. “As of May 22, 2023, IBIT had approximately 193,956 shareholders.”
The SEC’s approval continues the trend to expand regulated industries. financial Bitcoin products will help Bitcoin to be fully integrated into global commerce financial system. System.
“Important note: This is just one stage of approval, the OCC and CFTC has to approve as well before they officially list,” Balchunas continued. “The other two don’t have a ‘clock’ so not sure when they’ll be approved. A big step tho nonetheless that the SEC came around.”
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Source: bitcoinmagazine.com