The US Securities and Exchange Commission (SEC) is reviewing a proposal to approve FLEX equity options on BlackRock’s iShares Bitcoin Trust ETF (IBIT). This move could significantly impact the Bitcoin futures market, as it will allow for increased liquidity and risk management strategies. The application, submitted by BOX Exchange in December 2025, seeks to enhance market efficiency. Entities like BOX Exchange and Nasdaq ISE are also involved in this process, seeking approval for FLEX options on BlackRock’s ETF and expanding existing limits on IBIT options, respectively. These proposals have significant implications for institutional investors who could leverage more tools for hedge management and potentially shift away from opaque OTC derivatives, leading to increased exposure to Bitcoin through regulated products. The SEC’s decision will impact market liquidity and efficiency. The potential approval has already been reflected in a notable 8% surge in Bitcoin price. Market reactions show heightened interest in the Bitcoin futures market, as indicated by elevated open interest, signifying speculative activity and hedging strategies.