Spot Bitcoin ETF Exempted As Options Trading Opens For Inverse Funds

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.

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.

So get this…

Options trading is now available for 2X leveraged & inverse bitcoin ETFs, but *NOT* spot bitcoin ETFs.

I’m serious. pic.twitter.com/8VB6z5JqNL

— Nate Geraci (@NateGeraci) July 11, 2024

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.”

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