(Reuters) -The U.S. Securities and Exchange Commission has approved listing and trading of options for asset manager BlackRock’s spot bitcoin exchange-traded fund on the Nasdaq.

Options trading for BlackRock’s fund iShares Bitcoin Trust has been approved with ticker symbol “IBIT”, the regulator said in a notice on Friday.

The index options – listed derivatives offering a quick and inexpensive way to amplify exposure to bitcoin – on a bitcoin index would give institutional investors and traders an alternative way to hedge their exposure to the world’s largest cryptocurrency.

The approval for listing and trading options tied to a bitcoin ETF represents another positive step for cryptocurrency, once considered a nascent asset class.

Cryptocurrency has moved closer to mainstream acceptance since the launch of bitcoin ETFs earlier in the year.

Options give holders the right to buy or sell an asset, such as a stock or exchange-traded product, at a pre-determined price by a set date.

Exchanges began applying for the spot bitcoin ETF options as soon as it was clear the SEC would approve the underlying ETFs in January.

The SEC oversees technical rule changes that exchanges must make to list options. The regulator also said that its existing surveillance procedures will apply to IBIT options.

(Reporting by Pritam Biswas in Bengaluru; Editing by Mohammed Safi Shamsi)