In recent developments, the United States Securities and Exchange Commission (SEC) has initiated a comment period regarding Nasdaq’s proposal to introduce options trading on BlackRock’s Bitcoin spot ETF (exchange-traded fund).

According to the filing, on January 19, the SEC acknowledged Nasdaq’s proposal to list and trade options on BlackRock’s Bitcoin spot ETF. Public comments are being sought over a 21-day period on Nasdaq’s application for options trading on the iShares Bitcoin Trust (IBIT).

The suggestion to amend Options 4, Section 3, Criteria for Underlying Securities by the Exchange aims to enable the listing and trading of options on the iShares Bitcoin Trust as a Unit deemed suitable for options trading on the Exchange.

Options, which are derivatives providing holders the right to buy or sell an underlying asset at a predetermined price and time, can be privately traded or through standardized contracts on public exchanges.

It’s important to note that Nasdaq is not the sole exchange with a proposal to list and trade options on a Bitcoin ETF. The Securities and Exchange Commission has also opened a comment period on the request from Cboe to list options on ETPs that hold Bitcoin.

Bloomberg ETF expert James Seyffart has provided insight into the potential of observing options traded on spot Bitcoin ETFs soon. Seyffart mentioned that the SEC is moving more swiftly than anticipated on the options proposals, indicating the possibility of options approval before the end of February.

In a significant market milestone, BlackRock, the world’s largest asset manager, recently obtained SEC approval to offer an exchange-traded fund tracking the Bitcoin value. The firm’s iShares Bitcoin Trust emerged as the first BTC spot ETF, attracting over $1 billion in inflows among nearly a dozen competitors.

On a different note, while BlackRock’s Bitcoin spot ETF experiences success in the market, the trillion-dollar asset manager faces a potential delay in debuting an exchange-traded product holding Ethereum, the second-largest cryptocurrency.

The SEC announced its decision to extend the review period for Fidelity’s Ethereum ETF application, affording sufficient time to consider the proposed rule change and the related issues. Seyffart mentioned that the delay in Fidelity’s Ethereum spot ETF was expected, yet he highlighted late May as a critical period and a possible date for the SEC’s approval of multiple Ether ETFs, including BlackRock’s.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.