BlackRock Bitcoin Options Approved by SEC, Analysts Expect BTC Boom

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Insights - Last Friday, the U.S. Securities and Exchange Commission (SEC) approved BlackRock's Bitcoin Spot ETF (IBIT) options, fueling bullish sentiment across the market. Institutions such as Bloomberg and Bitwise Alpha have expressed optimism about the development.


The approved IBIT options follow an American-style exercise method, allowing holders to exercise their rights at any time before expiration. 


While the SEC has given its approval, the IBIT options are not yet tradable. They are still awaiting approval from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC). Both regulatory bodies have not provided a specific timeline for their decisions.


According to the SEC, IBIT options serve as a hedging and risk management tool, helping investors manage exposure to Bitcoin prices and Bitcoin-related products and positions.


In addition to risk management, the product offers other positive benefits. Eric Balchunas, Senior ETF Analyst at Bloomberg, noted that Bitcoin ETFs have achieved a significant milestone, as they are expected to attract more liquidity, which could, in turn, draw in larger investors.




Meanwhile, Jeff Park, Head of Strategy at Bitwise Alpha, expressed optimism about the potential impact of the approval, suggesting that the SEC's decision on BlackRock's Bitcoin Spot ETF options could lead to a sharp rise in Bitcoin prices.


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