SEC Approves Binary Options Linked to KPIs of 23 Listed Companies

The U.S. Securities and Exchange Commission (SEC) has approved binary options products linked to the key performance indicators (KPIs) of 23 listed companies, including Coinbase, Robinhood, and Marathon Holdings. Investors will be able to invest not only in Bitcoin prices but also in trading volumes, customer numbers, and production performance of digital asset-related companies. According to CoinDesk on the 16th (local time), the SEC approved the listing of binary options based on the KPIs of 23 U.S. listed companies. The target indicators include trading volumes of Coinbase Global, customer numbers and revenues of Robinhood Markets, and Bitcoin production volumes of Marathon Holdings. Binary options are financial products whose outcomes are determined by whether specific conditions are met, for example, predicting whether Coinbase's trading volume will exceed a certain level. This approval by the SEC follows a rule change application by Cboe Global Markets. The products will be cash-settled and structured as European-style options, which can only be exercised on the expiration date. Cboe plans to list the products this month, and Robinhood is expected to be the first brokerage to offer them to retail investors. The SEC chairman stated that this approval does not affect similar contracts that are under the supervision of the Commodity Futures Trading Commission (CFTC). Bitcoin has been fluctuating above $80,000 this week, and some analysts suggest that the 50-day moving average is acting as a support level.

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