Options trading on spot bitcoin ETFs may begin as soon as tomorrow, potentially bringing increased institutional interest to the crypto market. According to Alison Hennessy, head of ETP listings at Nasdaq, options on the iShares Bitcoin Trust (IBIT) could start trading soon, following the U.S. SEC's approval in September. Presently, IBIT is the only Nasdaq-listed spot bitcoin ETF among eleven available in the U.S. Options are derivatives that allow investors to buy or sell IBIT at a predetermined price within a set period. They offer a means for traders to leverage their positions or hedge against potential losses. Analysts suggest that options trading may attract institutional investors and impact market dynamics significantly. Other spot bitcoin ETFs could also have options trading available shortly after IBIT, as regulatory hurdles have mostly been cleared. Overall, the introduction of options is viewed as a pivotal step for the crypto space, possibly influencing price movements and trader engagement.

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