Good news for the cryptocurrency circle! The US SEC has approved the listing of Blackrock's physical bitcoin ETF options.

The U.S. Securities and Exchange Commission (SEC) approved the listing and trading of options for BlackRock, Inc.'s (BLK.US) spot bitcoin exchange traded fund (ETF) on Friday. BlackRock, Inc.'s iShares Bitcoin Trust ETF (IBIT.US) is the world's largest bitcoin fund, with net assets of $22.67 billion as of September 19, 2024. In a statement, the SEC said, "IBIT options will provide investors with a hedging and risk management tool to manage the risk exposure of bitcoin prices and bitcoin-related products and positions." These options will settle physically using American-style exercise. American-style exercise means that the holder can exercise their rights at any time before the expiration date of the option contract. The SEC stated that the trading of IBIT options will be similar to other ETF options. Bloomberg Senior ETF Analyst Eric Balchunas commented on the X platform, "Bitcoin ETFs have scored a huge victory (as it will attract more liquidity, attracting more big fish)." Balchunas added that IBIT options still need approvals from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC) before they officially launch. The other two institutions do not have a "timeline," so it is uncertain when approvals will be granted. Nevertheless, the SEC's shift is still a significant step forward. Options are contracts that give investors the right, but not the obligation, to buy (call options) or sell (put options) assets at a predetermined price before a specific date. Due to the volatile nature of bitcoin prices, options can help investors manage related risks more effectively. Earlier this year, the U.S. crypto industry received a major boost after the long-awaited spot bitcoin ETF was approved by the SEC. Shortly after, bitcoin surged to a record high of $73,000 in March, despite a pullback since the latest halving on April 19, 2024. According to CoinMarketCap, the global crypto industry has a market capitalization of $2.2 trillion. As of writing, bitcoin dipped to $63,000 per coin, down 0.32% for the day. It has still accumulated a 5% increase for the week.