Bitcoin ETFs have already made a multi-billion-dollar splash on Wall Street this year. But analysts say a new wave of institutional interest could roll in as options are added to the mix following recent regulatory approvals.

On Friday, the Securities and Exchange Commission (SEC) approved the listing and trading of options for 11 spot Bitcoin ETFs. With a majority of the products approved in January, the nod came as cumulative net inflows swelled past $20 billion for the group last week.

For products listed on the New York Stock Exchange, the approvals included the Fidelity Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust. On the Cboe, the WisdomTree Bitcoin Fund, the Franklin Bitcoin ETF, and VanEck Bitcoin Trust were among those granted a green light.

From the perspective of institutional players, options on ETFs make it easier, cheaper, and safer for them to participate in the Bitcoin market, Bitwise CIO Matt Hougan told Decrypt. As financial derivatives, options give investors the right to buy or sell an asset at a specific price within a certain time frame.

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Author: André Beganski