The United States Securities and Exchange Commission (SEC) made a significant move by approving to list of the highly anticipated BlackRock spot Bitcoin Exchange Traded Fund (ETF) iShares Bitcoin Trust (IBIT) options on Nasdaq. With this latest development, option traders can easily buy or sell IBIT options contracts. 

IBIT Options Settlement

In the report, the exchange made a statement that the options on IBIT would provide investors with a hedging and risk management tool to manage exposure to the price of Bitcoin and Bitcoin-related products and positions. The report also added, “Options on IBIT will be physically settled with American-style exercise.”

Nasdaq added that options on IBIT will trade in the same manner as other exchange-traded fund (“ETF”) options and that options on IBIT will be subject to the Exchange rules. 

Listing Standards for IBIT Options

Additionally, the Nasdaq also cited that options on IBIT traded on the exchanges require certain listing standards to protect investors and ensure a stable trading environment. According to the report, “Exchange’s initial listing standards require, among other things, that the security underlying a listed option be “characterized by a substantial number of outstanding shares that are widely held and actively traded.”