SEC opens comment period on proposal that would allow options trading on BlackRock's spot bitcoin ETF

The Securities and Exchange Commission asked for comments from the public about a proposal from Nasdaq that would allow for options trading on BlackRock's spot bitcoin ETF. 

The comment period will last for 21 days, according to a filing posted on Friday. 

"The Exchange proposes to amend Options 4, Section 3, Criteria for Underlying Securities, to allow the Exchange to list and trade options on iShares Bitcoin Trust (the 'Trust') as a Unit deemed appropriate for options trading on the Exchange," the filing stated. 

James Seyffart, Bloomberg Intelligence ETF research analyst, said the SEC is moving more quickly than normal on the proposal.  

"The SEC has already acknowledged the 19b-4's requesting the ability to trade options on spot #Bitcoin ETFs," Seyffart said on Friday in a post on X. "This is faster than SEC typically moves. Options could be approved before end of February if SEC wants to move fast?"

BlackRock, which just last week received the green light from the SEC to list its spot bitcoin ETF, the iShares Bitcoin Trust, brought in $145.5 million in inflows on Thursday alone. 

Turn to Ethereum 

Firms including BlackRock and Fidelity are also vying for a spot Ethereum ETF. On Thursday, the SEC delayed its deadline to make a decision on Fidelity's proposal until March 5. 

Fidelity applied for the Fidelity Ethereum Fund in November, noting in its proposal a court ruling last year where judges said the SEC failed to find a coherent reason on why it should reject spot crypto ETFs when it had allowed futures-based products.