Traders will soon be able to bet on whether Coinbase, Robinhood and Marathon will hit their targets
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The U.S. Securities and Exchange Commission (SEC) approved the listing of binary options tied to key performance indicators (KPIs) of 23 publicly traded U.S. companies, including Coinbase Global, Robinhood Markets, and Marathon Holdings. These options allow traders to bet on outcomes like Coinbase's trading volume or Robinhood's user count, settling based on SEC filing numbers. The rule change was filed by Cboe Global Markets and approved by SEC Chairman Paul Atkins.
Why it matters
According to Eleanor Terrett, the development introduces a new way to trade on crypto-linked company performance beyond directly betting on bitcoin prices. The approval demonstrates a potential new cooperation between regulatory agencies (SEC and CFTC) aimed at innovation and investor choice. The source does not provide detailed market impact analysis beyond this perspective.
Key context
Binary options are simple contracts that pay out based on a yes-or-no condition at expiration and are cash-settled. The SEC’s approval is specifically for these contracts under SEC jurisdiction, while similar contracts fall under the Commodity Futures Trading Commission’s (CFTC) purview. Trading of these new instruments awaits Cboe Clear U.S. clearing house provisional registration.
Key numbers and entities
Entities involved are Coinbase Global (COIN), Robinhood Markets (HOOD), Marathon Holdings (MARA), Cboe Global Markets, and the SEC led by Chairman Paul Atkins. Bitcoin's price is mentioned at $82,563.48 in the context of market activity.
What remains unclear
The source does not specify the 23 companies involved beyond Coinbase, Robinhood, and Marathon. It also does not detail the exact KPIs beyond general examples or the potential liquidity and trading volumes expected for these binary options. The timing for full market availability beyond this month and how retail platforms will implement the products remain uncertain.