Options Trading for BlackRock’s iShares Bitcoin Trust ETF (IBIT) Is Expected to Commence on Nasdaq on Tuesday

IBIT options trading was approved back in September after BlackRock withdrew its application one month prior.

Options trading for BlackRock’s iShares Bitcoin Trust ETF (IBIT) will begin on Nasdaq on Tuesday, according to an OCC filing.

The Options Clearing Corporation (OCC) updated its documentation on Monday to include the listings for the $43 billion product following months of regulatory progress.

IBIT options trading was approved back in September after BlackRock withdrew its application one month prior.

The SEC went on to approve changes to Nasdaq rules that allow for the listing of options on Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB). Cboe Global Markets were also approved to list options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).

“Our intent at Nasdaq is to list and trade these options as early as tomorrow,” Nasdaq’s Head of ETP Listings Alison Hennessy said on Monday. “Getting these options listed on IBIT into the market will be very exciting for investors.”

A spokesperson from Nasdaq confirmed with Decrypt that the products will launch on Tuesday.

"On November 15, 2024, the CFTC Division of Clearing and Risk issued a staff advisory related to clearing of options on spot commodity exchange traded fund," The OCC said in a note.

"Based on this advisory OCC is preparing for the clearance, settlement, and risk management of such options, which are subject to the new option listing process as outlined in the Options Listing Procedure Plan."

BlackRock’s IBIT ETF has already established itself as the dominant player in the burgeoning spot Bitcoin ETF market, drawing $29 billion in inflows in 2024 alone. This success aligns with Bitcoin’s meteoric rise past $93,000 this year and the broader inflow of over $27 billion into spot Bitcoin ETFs.

Options on Bitcoin ETFs not only bolster Bitcoin ETFs but offer additional liquidity, which could strengthen Bitcoin's price. As BRN analyst, Valentin Fournier explains, "The SEC’s approval of options for Bitcoin ETFs could substantially impact Bitcoin’s price dynamics. First, it gives analysts more tools to assess institutional demand and overall market activity.

"Second, the broader range of investment strategies offered by ETF options makes Bitcoin ETFs more appealing. Finally, additional liquidity from options trading could help stabilize Bitcoin's historically volatile price."

First, it gives analysts more tools to assess institutional demand and overall market activity. Second, the broader range of investment strategies offered by ETF options makes Bitcoin ETFs more appealing.