The Securities and Exchange Commission has published a notice about a proposed rule change by MEMX LLC to list and trade options on two Bitcoin exchange-traded funds (ETFs): the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF. This rule change aims to amend Exchange Rule 19.3 to allow trading options on these Bitcoin Funds. The plan is seen as competitive, following similar moves by another exchange, Cboe. MEMX believes that offering these options will provide investors with a lower-cost way to invest in Bitcoin, increase market transparency, and improve price discovery on the exchange.
Simple Explanation
MEMX, a group that helps people trade, wants to let people trade new kinds of Bitcoin stuff called "options" for two special Bitcoin funds. They think this will help people understand and buy Bitcoin more easily, like how another group does it, and it could make buying Bitcoin cheaper and clearer.