The U.S. Securities and Exchange Commission (SEC) has approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT) ETF.

This marks a pivotal moment for institutional and retail investors, providing them with more tools to hedge risks and speculate on Bitcoin’s price movements. The options will be listed on the Nasdaq exchange under the ticker IBIT and traded following standard ETF option rules​.

The approval is expected to drive increased liquidity and participation from institutional investors.

Options trading allows investors to buy or sell Bitcoin at pre-set prices, helping them manage exposure to the often volatile digital asset. According to market analysts, this move could boost Bitcoin’s presence in mainstream financial markets, potentially increasing the total trading volume of IBIT, which has already surpassed $875 million in August​.

This regulatory approval represents a broader acceptance of Bitcoin by traditional financial institutions and could signal a future expansion into other cryptocurrencies, such as Ethereum, for which Nasdaq has already filed for ETF options​

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