**Bitcoin ETF Options Finally Get Regulatory Attention**

After months of waiting, applications to list options on spot Bitcoin (BTC) exchange-traded funds (ETFs) are gaining traction with U.S. regulators. Expect BTC ETF options to start trading on U.S. exchanges this year, with Ethereum (ETH) ETF options soon to follow.

Options are contracts that allow the right to buy or sell an asset at a specific price, making them popular for hedging and speculation. Despite the recent launch of BTC ETFs, options are crucial for institutional adoption due to crypto ETFs' volatility.

In January, NYSE Arca, Cboe, and Nasdaq requested the SEC to list options on BTC ETFs. The SEC initially delayed, but recent filings suggest progress. Bloomberg predicts BTC options will go live in Q4, with ETH options following.

Currently, U.S. investors trade options on Bitcoin futures ETFs, which underperform spot market equivalents. The market for these options is nearly as large as the ETFs themselves, indicating a significant demand for spot BTC ETF options.

Options are essential for market infrastructure and mass crypto adoption, helping financial advisors and hedge funds manage risk. With major firms like Morgan Stanley already on board, the introduction of BTC ETF options could attract substantial institutional capital.