The Securities and Exchange Commission (SEC) announced that the BOX Exchange LLC filed a proposed rule change to allow options trading on Bitcoin Funds, including the Grayscale Bitcoin Trust and Bitwise Bitcoin ETF. This proposal, effective immediately, aligns with a similar rule change recently approved for another exchange, NYSE American. The BOX Exchange argues that offering Bitcoin Fund options will provide investors with cost-efficient investment tools and improved market transparency. The regulatory filing outlines the rules and safeguards, including position limits and surveillance measures, to ensure fair and transparent trading.
Simple Explanation
The document says that a group called the SEC is allowing a place where people buy and sell things, called the BOX Exchange, to let people trade special kinds of bets called options on something like imaginary coins called Bitcoin. This, they say, is to help people have new ways to invest their money.