The Securities and Exchange Commission (SEC) has announced a proposed rule change by MEMX LLC, which aims to amend Exchange Rule 19.3. This change would allow the exchange to list and trade options on the iShares Bitcoin Trust, providing investors a chance to engage with Bitcoin through a public market rather than directly. The new rule outlines measures like custody provisions, position limits, and compliance with existing standards for trading and oversight. MEMX believes this proposal will give investors more options for managing their investments and hedging risks related to Bitcoin.
Simple Explanation
MEMX, a stock exchange, wants to change some rules so people can buy and sell options (like a type of contract) on Bitcoin in a safer and more controlled way, instead of just owning Bitcoin directly. This will help people have more choices in how they handle their money and keep it safe.