The Securities and Exchange Commission (SEC) has approved a rule change proposed by BOX Exchange LLC that allows the trading of options on the iShares Bitcoin ETF. This decision follows a similar proposal approved for Nasdaq ISE. The rule, effective immediately, establishes new position and exercise limits for these options, set at 25,000 contracts. This move is intended to provide investors with a cost-effective method to gain exposure to Bitcoin through a familiar public securities market. Additionally, BOX Exchange updated its rules to reflect the current names of certain trust funds.
Simple Explanation
The Securities and Exchange Commission (SEC) has allowed a rule change so that people can now buy and sell special kinds of contracts (called options) for the iShares Bitcoin fund, letting them invest in Bitcoin more easily. This rule says you can have up to 25,000 of these contracts at one time, making it simpler and safer for people to join in.