Options on Bitcoin (BTC) exchange-traded funds (ETFs) are expected to be available in the first quarter of 2025 in the U.S. “I think options before the end of the year are possible, but Q1 2025 is more likely,” Bloomberg Intelligence analyst James Seyffart told the Permissionless conference.

In September, the U.S. Securities and Exchange Commission (SEC) allowed Nasdaq to list options on BlackRock’s Bitcoin ETF. However, final approvals are pending from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).

“Unlike the SEC rules, the CFTC and OCC don’t have strict deadlines, so they could delay it further,” Seyffart said. The SEC approved spot BTC ETF options on Sept. 20.

Options are contracts that grant the right to buy or sell at a specific price. In the U.S., if one party fails to honor the agreement, the OCC steps in and regulates the trade. “Synthetic notional exposure to Bitcoin can grow exponentially without the risks that keep investors away,” Jeff Park said.

Financial advisors control half of the investment flows in the $9 trillion ETF market and use options to hedge against sharp market moves. “Writing options on ETFs can help advisors become more comfortable in this space,” Seyffart said.

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