The Commodity Futures Trading Commission (CFTC) in the United States has paved the way for spot Bitcoin exchange-traded fund (ETF) options by issuing a clearance notice. Analysts suggest these products might hit the market in the near future.
“Ball now in OCC’s court, and they are into it, so they’ll prob list very soon,” said ETF analyst Eric Balchunas in a Nov. 15 post on X (formerly Twitter).
“Here. We. Go,” added fellow ETF analyst James Seyffart.
In its Nov. 16 statement, the CFTC clarified that its Division of Clearing and Risk (DCR) had determined the agency would no longer play a role in the clearing process for these options.
“These ETF options are cleared and settled by the Options Clearing Corporation as the sole issuer of all equity options,” the statement noted.
The development has sparked optimism among crypto industry leaders, with many predicting it could significantly influence Bitcoin’s market performance.
Nick Forster, founder of Derive, highlighted in a Nov. 15 X post that SoftBank had significantly boosted the Nasdaq in 2020 and 2021 by aggressively trading options on major stocks. “When someone tries to do that with fixed supply BTC… look out,” Forster remarked.
Bitcoin ETF options will come ‘sooner than you think’
According to Balchunas, this CFTC clearance represents the “second hurdle” for spot Bitcoin ETF options, following earlier approval from the Securities and Exchange Commission (SEC).
Jeff Park, Head of Alpha Strategies at Bitwise Invest, echoed this sentiment, stating that with the CFTC stepping aside, the Options Clearing Corporation (OCC) is the final checkpoint. “Bitcoin ETF options are sooner than you think,” Park noted.
While Park expressed confidence in the OCC’s swift action, he also advised caution regarding the timeline. “While the end of 2024 is a realistic goal, I wouldn’t say approval by year-end is guaranteed,” he added. “I wouldn’t short the odd.”
Meanwhile, Bitcoin commentator British Hodl predicted a slightly earlier timeline, telling their 76,000 X followers, “Q1 is my estimate.”
The momentum for spot Bitcoin ETF options began on Oct. 18, when the SEC approved applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list these long-awaited options.
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