The Securities and Exchange Commission has received a proposal from Nasdaq PHLX LLC to allow FLEX Trading in options for the iShares Bitcoin Trust ETF (IBIT). This would enable these options to trade as both cash-settled and physically settled, with a consolidated limit of 25,000 contracts, which aims to prevent market manipulation and protect investors. The proposal is intended to broaden the range of available trading products and better manage investment risks in bitcoin-related products. Public comments are invited on whether this proposal aligns with the Securities Exchange Act's standards.
Simple Explanation
The SEC is looking at a plan from a company called Nasdaq PHLX to let people trade special options on a fund related to Bitcoin. These options would help investors make better choices and keep things fair, with some rules in place to stop any tricks and protect everyone investing.