Cboe exchange has amended its application to list crypto trading options on the spot crypto ETFs in the US, which could be another enabler for adoption.
The Cboe exchange in the US has filed for listing crypto trading options. Meanwhile, the firm has specified it wants approval for the options on the spot crypto ETFs. Spot ETFs for both Bitcoin and Ethereum are trading in US stock exchanges. Moreover, the Nasdaq stock exchange market had also applied for Bitcoin index options a few days ago.
Crypto options, like traditional options, are financial derivatives that offer investors the right, but not the obligation, to sell or buy crypto at a preset price (strike price) within a specific timeframe. These contracts provide unique benefits that can be advantageous to both experienced traders and those new to the crypto market.
Cboe exchange has mentioned that the options would be on ETFs of all the major asset managers. At present, prominent asset managers like BlackRock and Fidelity have their ETFs live. In the US, commodity ETFs are also available for options trading. If regulators approve the latest application, the spot crypto ETFs will also be eligible for the same category.
Options contracts offer leverage, allowing investors to potentially generate much higher returns with a relatively small investment. A small price movement in the underlying crypto can lead to substantial gains or losses on the option contract. Hence, crypto traders on these ETFs have chances to maximize their profits.
Although the view of US regulators on crypto options is unclear, crypto analysts and experts are positive. Most have been deliberating on the financial products on social media.
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