Spot Bitcoin ETF Exempted As Options Trading Opens For Inverse Funds

Godfrey Benjamin
July 12, 2024
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Spot Bitcoin ETF Options Debut on Nasdaq With Record Trading: Details

Highlights

  • T-REX has launched Options trading for Inverse Bitcoin ETFs
  • The wait for spot Bitcoin ETF counterpart continues
  • The market is expected to see intense volatility from these offerings

While the broad cryptocurrency sector awaits approval for spot Ethereum Exchange-traded Funds (ETFs), options trading just went live for 2X leveraged and inverse Bitcoin ETFs.

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Latest ETF Products on The Block

On Thursday, REX Shares and Tuttle Capital Management (T-REX) announced a new product for their trading ETF lineup.

The firms stated that options are now available exclusively for their T-REX ETFs. This includes the T-REX 2X Long Bitcoin Daily Target ETF (BTCL) and the T-REX 2X Inverse Bitcoin Daily Target ETF (BTCZ) for sophisticated traders. In the firm’s opinion, this exclusive offering affords Bitcoin investors the avenue to engage in the market with greater flexibility and strategic depth.

Noteworthy, both ETFs are targeted at investors who are interested in Bitcoin but they cater to different needs. The BTCL focuses on traders that are quite optimistic about Bitcoin, provided with an opportunity to boost their daily return. On the other hand, BTCZ are for those traders who seek profit from a plunge in Bitcoin price. This enables sophisticated strategies in both rising and falling markets.

Additionally, President of ETFStore Nate Geraci pointed to the fact that the offering was in no way connected to spot Bitcoin ETF.

In a note to its community, REX Shares and Tuttle Capital Management highlighted that it expects a surge in interest from its trading community.

“We strongly encourage all traders to approach this exclusive offering with diligence, ensuring they are well-informed about the unique characteristics and risks associated with trading options for these specialized ETFs.”

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SEC Remains Silent on Spot Bitcoin ETF Options Trading

Meanwhile, several spot Bitcoin ETF issuers have been seeking the SEC’s approval for spot Bitcoin ETF options for a very long time.

These companies, including Bitwise and Grayscale, are seeking to list the Bitcoin ETFs on exchanges and trade them on derivatives. The movement started with NYSE which identified the massive demand generated by the trading of options on BITB, GBTC and other trusts that hold Bitcoin directly.

The SEC has been reviewing the NYSE plan up to the point of requesting public commentary on the proposed rule change. Towards the end of Q1, the SEC  noted that it was extending the review period until a later date. Till now, nothing has been said concerning the offering.

Read More: Judge Critiques Coinbase Gensler Subpoena Effort in SEC Case

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.