Trading for Spot Bitcoin ETF Options Could Begin as Early as Tomorrow

Options trading on spot bitcoin ETFs, a move expected to boost institutional participation in cryptocurrency markets, could commence as early as Tuesday, Nasdaq announced.

“We’re preparing to list and trade these options as soon as tomorrow,” said Alison Hennessy, Nasdaq’s head of ETP listings, in a statement to Bloomberg TV. “This is a milestone for investors, offering tools they’ve been requesting to manage exposure to spot bitcoin ETFs.”

Of the 11 spot bitcoin ETFs currently available in the U.S., only BlackRock’s iShares Bitcoin Trust (IBIT), which is listed on Nasdaq, is positioned to have options trading in the immediate term.

Options contracts give traders the right to buy or sell an asset—IBIT in this instance—at a pre-set price before a specified expiration date. They are favored for strategies involving leverage, hedging, and managing portfolio risk.

The SEC approved IBIT options earlier this year, along with rule changes for exchanges like the NYSE and Cboe that list other bitcoin ETFs.

ETF analyst James Seyffart of Bloomberg Intelligence noted that options for other bitcoin ETFs might follow quickly. “There’s a strong likelihood that trading kicks off within the next day or two,” Seyffart said. “Regulatory barriers seem to be cleared; now it’s about finalizing logistics.”

Analysts believe the introduction of options on bitcoin ETFs could catalyze greater institutional activity in crypto markets. However, it remains uncertain how the resulting leverage and risk management dynamics might influence bitcoin’s price behavior.