Markets

SEC Greenlights Nasdaq Listing of Options for BlackRock’s Bitcoin ETF

Published

2 months ago

September 23, 2024

The U.S. Securities and Exchange Commission has approved a rule change that allows Nasdaq’s International Securities Exchange to list and trade options on the iShares Bitcoin Trust (IBIT), BlackRock’s widely-traded exchange-traded fund.

Its decision marks another step in expanding the range of derivative products linked to Bitcoin, providing investors with additional tools for managing exposure to the world’s largest crypto.

BlackRock had been seeking approval for such a listing since at least March of this year following the regulator’s approval for multiple Bitcoin-linked ETFs in the U.S.

The SEC’s approval follows several amendments submitted by Nasdaq ISE, which sought to address concerns over market manipulation and excessive risk-taking in the fledgling crypto options market.

It follows several requests to amend rule changes to allow for the listing of options tied to Bitcoin and Ethereum ETFs in the U.S., which have faced resistance over market stability concerns.

A key amendment sets position and exercise limits for options on IBIT at 25,000 contracts—described by the exchange as “extremely conservative” given the size of the market and the trust’s liquidity, SEC filing records show.

Options on IBIT will be physically settled and feature American-style exercise, offering a hedge for investors looking to manage Bitcoin-related risks.

BlackRock’s ETF, which tracks the price of Bitcoin, has attracted significant attention from both retail and institutional investors since it launched earlier this year, becoming one of the most liquid Bitcoin-related products in the U.S. market.

Despite the approval, the SEC’s move comes amid ongoing concerns about the potential risks associated with cryptocurrency derivatives.

Comment letters submitted during the review process highlighted worries over market volatility and the broader integration of crypto into traditional financial markets. Some urged the SEC to delay approval until the Bitcoin market further stabilized.

In any case, the SEC found that the exchange’s surveillance mechanisms, including real-time monitoring and inter-market surveillance-sharing agreements with the CME, would be sufficient to deter manipulation.

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DeFi

Ethena Sees $1B Inflows as Crypto Rally Brings Back Double-Digit Yields

Published

10 hours ago

November 19, 2024

admin

The protocol’s rejuvenation is driven by elevated perpetual funding rates, with more catalysts ahead for growth.

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Markets

Shiba Inu price prepares a big move as burn rate surges 940%

Published

17 hours ago

November 19, 2024

admin

Shiba Inu price is preparing for a massive bullish breakout as its token burn accelerates, the crypto fear and greed index remains in the green zone, and a bullish pattern forms.

Shiba Inu (SHIB), second-biggest meme coin, was trading at $0.000026 on Tuesday, Nov. 19, slightly above last Friday’s low of $0.0000246. It has jumped by 142% from its lowest level in August.

SHIB’s rebound occurred as data from Shiburn showed that the number of Shiba Inu tokens burned on Tuesday surged by almost 940% to 3.69 million. This burn brought the total number of burnt SHIB tokens to over 410 trillion, while its circulating supply stood at 583.7 trillion tokens.

Shiba Inu’s token burn involves sending tokens to a wallet without a key, effectively removing them from circulation. These tokens come from its ecosystem networks like Shibarium and ShibaSwap, as well as voluntary contributions by community members.

Shiba Inu is also recovering as the crypto fear and greed index remains in the extreme greed zone at 83. Historically, altcoins tend to perform well when there is a heightened sense of greed in the crypto market.

This sentiment has also driven gains in other meme coins, bringing the total market cap of the meme coin sector to $128 billion. This valuation surpasses that of large companies such as Lockheed Martin, Palo Alto Networks, ADP, and Airbus.

Shiba Inu price has formed a bullish pattern

The outlook for Shiba Inu remains bullish, as the coin has formed a highly bullish pattern on the daily chart. It displays a cup and handle formation, characterized by a rounded bottom followed by a pullback or consolidation near the top.

The coin is in the process of forming the handle section. A break above the upper side of the cup at $0.00002933 could signal further gains, with the next target being the year-to-date high of $0.000045—76% higher than the current level.

Shiba Inu remains above the 50-day moving average, while the Market Value to Realized Value indicator has climbed above 3. However, a drop below the key support level at $0.000020 would invalidate the bullish outlook.

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