The U.S. Securities and Exchange Commission (SEC) has given the green light for Bitcoin (BTC) options exchange-traded funds (ETFs) to be listed on two major US exchanges. In official statements, the regulatory agency announced its approval of the bids submitted by the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list options contracts for BTC-based ETFs. This decision was influenced by the recent approval of a rule change proposal from Nasdaq, which allowed for the listing of options on the iShares Bitcoin Trust (IBIT) and produced positive outcomes. The SEC believes that these options ETFs will provide hedging opportunities, increase liquidity, improve price efficiency, and reduce volatility in relation to the underlying funds. Furthermore, the listing of these options will enhance the transparency and efficiency of markets for these products. Jeff Park, head of alpha strategies at Bitwise, previously predicted that things would become exciting after the SEC approved Nasdaq’s bid to list BlackRock’s IBIT options. Park highlighted the unique characteristics of BTC, such as its limited supply, and expressed optimism about the potential for regulated leverage on a perpetual commodity. He anticipated that the Bitcoin ETF options market would bring unprecedented excitement and acknowledged the existence of a decentralized market that would continue to operate even if regulated markets were to shut down. Overall, the SEC’s approval of Bitcoin options ETFs marks a significant development in the financial world, offering regulated leverage on a supply-constrained asset.