The U.S. Securities and Exchange Commission (SEC) has officially approved the New York Stock Exchange (NYSE) to begin options trading on Spot Bitcoin Exchange-Traded Funds (ETFs).

The approval comes after the NYSE filed for Bitcoin ETF options in August 2024, seeking to broaden its financial offerings by incorporating Bitcoin-based funds. Until now, investors could trade Spot Bitcoin ETFs directly, but the addition of options trading provides more flexibility for managing investment strategies tied to Bitcoin, including the ability to hedge positions or capitalize on Bitcoin’s price volatility.

This decision aligns with the growing trend of mainstream financial institutions embracing Bitcoin-related products. Over the past month, Bitcoin ETFs have attracted over $2.1 billion in net inflows, underscoring heightened investor interest.

The SEC, which had initially been cautious about approving Spot Bitcoin ETFs due to concerns over market manipulation and volatility, had approved the first Spot Bitcoin ETFs earlier this year. Despite its slow approach, the regulator’s latest approval signifies growing confidence in Bitcoin’s role in the financial ecosystem.

The immediate market reaction to the SEC’s approval has been notable. Bitcoin's value surged 3% following the announcement, with experts predicting a continued upward trend over the coming days. Bitcoin had already seen a strong recovery in Q3 2024, climbing over 13% in the past month. As of Friday, Bitcoin was trading close to its all-time high of $73,000, reached in March 2024.

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