Cboe BZX Exchange, Inc. has filed a proposal with the Securities and Exchange Commission to change its rules to allow listing options on certain Bitcoin ETFs, such as the iShares Bitcoin Trust and the Grayscale Bitcoin Trust. The primary goal is to give investors a way to trade options tied to Bitcoin prices through a regulated exchange, which can be more transparent and secure than over-the-counter markets. These options will have a position limit of 25,000 contracts to prevent market manipulation, and the proposal includes provisions for initial and continued listing standards. The SEC is inviting public comments on this proposal.
Simple Explanation
Imagine a big store that wants to let people trade bets on the price of a special kind of computer money called Bitcoin. They plan to do this in a safe and clear way, with rules to make sure no one cheats, and they're asking people what they think about this idea.