The United States Securities and Exchange Commission (SEC) has taken a significant step by approving options trading for BlackRock’s spot Bitcoin exchange-traded fund (ETF). The move grants Nasdaq the ability to list and trade options on BlackRock's iShares Bitcoin Trust under the ticker IBIT, according to a notice from Sept. 20.

Nasdaq stated that trading for these options will follow the same rules as other ETF options and will be “physically settled with American-style exercise.” The approval marks an important milestone, with the SEC indicating that options will be subject to the exchange’s listing standards. These standards ensure that the underlying asset is “widely held and actively traded,” a critical factor for its approval.

While this is a positive step for BlackRock, it is uncertain if the SEC will approve similar offerings for other U.S. exchanges. Bloomberg analyst Eric Balchunas speculated that further approvals might be on the way, though the timeline is unclear as additional approvals from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) are still required.

In August, the trading volume for BlackRock's Bitcoin ETF surpassed $875 million, signaling massive investor interest. As Nasdaq pushes forward, it has also filed with the SEC for options trading on spot Ethereum ETFs, indicating that more developments in crypto investment could be on the horizon.