Options on bitcoin ETFs look likely to start trading this week.
Why it matters: Typically, options markets have the potential to be larger than the market for the underlying asset the options are based on.
The latest: CoinDesk reported yesterday that options trading on BlackRock's IBIT instrument — the largest bitcoin ETF — should begin on the New York Stock Exchange today.
Options on other ETFs should begin soon.
Zoom out: Options have long been viewed as an important tool for drawing more institutional traders to bitcoin ETFs.
They're used by funds both to help enhance returns and to manage portfolio risk.
Background: The Securities and Exchange Commission approved the options in September, but other regulators had to weigh in as well.
The CFTC ruled last week that options trading is an SEC matter, clearing the way for the final green light.
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