The U.S. Securities and Exchange Commission (SEC) approved applications on October 18 to list Bitcoin exchange-traded fund (ETF) options on the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE).

The SEC has fast-tracked approval for Bitcoin options trading for 11 ETF providers, including well-known funds such as the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, BlackRock's iShares Bitcoin Trust ETF, and others.

And why does this matter?

First, the approval of Bitcoin ETF options means that investors will view BTC as a more mature asset.

Second, the Bitcoin options market could provide new opportunities for both institutional investors and ETF managers. This is because BTC options are more flexible and can allow for higher leverage - they can amplify returns, control larger positions, use options as hedging instruments, etc.

To quote the SEC itself, which wrote in its approval:

"Options on Bitcoin Funds will allow for hedging and provide greater liquidity, better pricing efficiency, and lower volatility relative to the underlying funds. Additionally, allowing the listing of such options will improve the transparency and efficiency of the markets for these and related products."

But most importantly, options can inject liquidity into Bitcoin markets, as Bitwise CEO Jeff Park argued. Park also noted that these options can cause "short squeezes," where over-leveraged traders are forced to buy Bitcoin to close positions.

💸💲🧠 Get up to 5020 USDT as a welcome bonus and an additional 1025 USDT by using this referral on  Bybit.