Emily Walker
The introduction of spot Bitcoin ETFs has cleared a significant legal hurdle as the US Commodity Futures Trading Commission (CFTC) recently announced that it will no longer manage the approval process for these ETFs. In a notice from November 15th, the CFTC’s Division of Clearing and Risk stated that authority over the approval will now lie with the Options Clearing Corporation (OCC).
ETF analyst Eric Balchunas noted that the OCC is likely feeling the pressure and may start listing these ETFs very soon, as they are now the only entity authorized to finalize the listing.
The approval of these products will enable Wall Street to engage with spot Bitcoin ETFs, which could increase trading activity and influence their market prices.
Understanding Spot Bitcoin ETFs in the US
Spot Bitcoin ETFs differ from traditional assets by combining conventional options trading characteristics with the dynamic nature of cryptocurrencies. Spot ETFs allow everyday traders to participate in the cryptocurrency market with minimal investment and facilitate quick buying and selling of shares on the open market.
BOOM: The CFTC just dropped a notice clearing the way for spot bitcoin ETF options to be listed. This is the second hurdle they needed to clear after the SEC. Ball now in OCC’s court and they are into it, so they’ll prob list very soon. pic.twitter.com/tRiwaPpoW4
— Eric Balchunas (@EricBalchunas) November 16, 2024
The Securities and Exchange Commission (SEC) has given the green light for these options to be listed on exchanges such as the CBOE and NYSE, stating Nasdaq’s involvement with iShares Bitcoin Trust (IBIT) was a success.
Experts view the CFTC’s announcement as a pivotal moment for Bitcoin ETFs and the wider cryptocurrency market. The listing of spot BTC ETF options is expected to draw in more investors, reinforcing the legitimacy of cryptocurrencies.
Are Bitcoin ETF Options Coming Soon?
Market analysts predict that the listing of Bitcoin ETF options is imminent. Jeff Park from Bitwise Invest believes that these options will be key players in the cryptocurrency landscape.
Park anticipates that the OCC will respond promptly but expects the actual listing could occur by the end of 2024. Nevertheless, he considers that the timeline remains uncertain and could change.
Commentator British Hodl predicts that these approvals and listings might take place in the first quarter of 2025.
Following Suit: Spot ETH Options?
With the potential listing of spot BTC ETF options, the topic of spot Ethereum ETFs has emerged. A user on Twitter/X, Austin, questioned whether Ethereum might pursue a similar route.
Austin speculated on the possibility of reapplying for ETH ETFs, citing the recent election of Donald Trump as a relevant factor. However, the SEC has indicated it’s still evaluating ETH ETFs, noting the need for expert assessments and public feedback. The agency emphasizes that any new Ethereum products must adhere to federal securities laws.
Featured image from Blue Trust, chart from TradingView