The Securities and Exchange Commission (SEC) is reviewing a proposed rule change by Nasdaq Phlx, LLC that would allow the trading of FLEX options on shares of the iShares Bitcoin Trust ETF. This rule change would enable these options to be both cash-settled and physically settled. The SEC is considering whether to approve or disapprove the proposal and has invited comments from the public until April 10, 2025. The proposal aims to enhance market flexibility and provide more risk management tools for investors, but the SEC needs more information to ensure it aligns with various legal and market integrity requirements.
Simple Explanation
The SEC is thinking about whether to allow special types of trading options for a Bitcoin-related fund. They want to make sure it's safe and fair for everyone, so they're asking people to share their thoughts on it.