Bitcoin ETF Fans Sees Options Trading Approval as Next Hurdle

As the first cryptocurrency exchange-traded funds begin trading, Wall Street is on stand by for the next stage of evolution in digital assets: options.

As the world’s largest options exchange, Cboe Global Markets Inc., has already filed for approval to offer options tied to exchange-traded products holding Bitcoin. The derivatives are favored by investment pros — as well as increasingly sophisticated retail investors — as a way to make wagers on future gains or hedge against losses.

The exchange submitted the filing to the US Securities and Exchange Commission last week, noting that approval for Bitcoin ETFs was ...