The United States Commodity Futures Trading Commission (CFTC) has issued a notice, paving the way for spot Bitcoin exchange-traded fund (ETF) options.
Analysts believe these products could be listed soon.
“Ball now in OCC’s court, and they are into it, so they’ll prob list very soon,” ETF analyst Eric Balchunas commented in a Nov. 15 post on X (formerly Twitter).
CFTC’s position on Bitcoin ETF options
“Here. We. Go,” added ETF analyst James Seyffart.
The CFTC’s Nov. 16 statement clarified the Division of Clearing and Risk’s (DCR’s) position, stating that the agency has no further role in clearing these options.
“These ETF options are cleared and settled by the Options Clearing Corporation as the sole issuer of all equity options,” the statement said.
The CFTC emphasized that the listing of spot Bitcoin ETF options “does not implicate” its jurisdiction.
Optimism for Bitcoin price impact
Crypto executives are optimistic about the potential impact on Bitcoin’s price.
Nick Forster, founder of Derive, highlighted the influence options trading could have, pointing to SoftBank’s past actions.
“SoftBank literally pumped the Nasdaq in 2020/2021 by yeeting options in multiple multi-hundred-billion dollar names,” Forster wrote.
“When someone tries to do that with fixed supply BTC… look out,” he added.
Approvals and timelines
Balchunas noted that CFTC clearance marked “the second hurdle” for Bitcoin ETF options, following prior approval from the Securities and Exchange Commission (SEC).
Bitwise Invest’s Head of Alpha Strategies, Jeff Park, said, “Bitcoin ETF options are sooner than you think,” but cautioned that while the OCC is expected to act quickly, year-end approval remains uncertain.
“I wouldn’t short the odd,” Park remarked.
Bitcoin commentator British Hodl suggested Q1 2025 as the likely timeframe.
The SEC had previously approved applications from the New York Stock Exchange and the Chicago Board Options Exchange on Oct. 18 to list these long-awaited options.
