Spot Bitcoin ETFs are clearing their biggest legal hurdle yet after the U.S. Commodity Futures Trading Commission (CFTC) clarified that it no longer plays a role in settling BTC ETF options. In a November 15 staff advisory, the CFTC, through its Settlement and Risk Division, announced that it was delegating approval authority to Options Clearing Corporation (OCC).
According to ETF analyst Eric Balchunas, OCC is currently under pressure and will likely list these ETFs soon. At this point, only the OCC has the authority to adjudicate ETF option quotes.
Approval of these products will give Wall Street access to spot Bitcoin ETFs, increasing trading volume and potentially driving up their price.
A look at Spot Bitcoin ETFs in the US
Unlike customary assets, these spot Bitcoin ETFs combine the conventional features of options trading with the volatility of cryptocurrencies. Spot ETFs they allow retail traders to participate in the cryptocurrency market without spending a lot of money. More importantly, they enable individual investors to quickly buy and sell their shares on the open market.
BOOM: The CFTC just published a notice paving the way for spot option listings on Bitcoin ETFs. This is the second hurdle they had to overcome after the SEC. The ball is now in OCC’s court and they like it, so they will likely be on the list soon. pic.twitter.com/tRiwaPpoW4
— Eric Balchunas (@EricBalchunas) November 16, 2024
The Securities and Exchange Commission (SEC) has approved an application to list these options on the CBOE and NYSE. Nasdaq’s experience with the iShares Bitcoin Trust (IBIT) was deemed a success, according to the SEC.
Analysts believe CFTC Consulting as a huge development for Bitcoin ETFs and the cryptocurrency market. If BTC ETF spot options are listed, they will attract more investors, further legitimizing the position of cryptocurrencies.
BTC market cap currently at $1.81 trillion. Chart: TradingView.com
Bitcoin ETF Options Coming Soon?
This is what experts and market analysts expect Bitcoin ETF options will be listed soon. According to Jeff Park of Bitwise Invest, these BTC ETF options will dominate the cryptocurrency market.
Park believes the OCC will act on the request immediately, but sees delayed 2004 as the most likely date for the company to go public. Still, he believes the approval is adaptable and anything can happen.
British Hodl, a popular BTC commentator, estimates that approval and listing will take place in the first quarter of 2025.
Find ETH options, next?
With the growing ability to list spot options on the BTC ETF, many in the industry have come up with the same idea for the Ethereum blockchain. One Twitter/X user, Austin, asked if Ether would follow suit.
Austin wondered if it would be possible today to re-file a previous motion stating that Donald Trump had just been re-elected as the next president of the United States.
The SEC has already made a decision on ETH ETFs, saying they still require expert review and public comment. According to the agency, the transition of ETH to modern products must comply with national security regulations.
Featured image from Blue Trust, chart from TradingView
