Spot Bitcoin ETFs face their biggest legal roadblock yet after the US Commodity Futures Trading Commission (CFTC) clarified that it will no longer play a role in liquidating options on Bitcoin ETFs. In a staff advisory dated November 15, the CFTC, through its Clearing and Risk Division, announced that it would transfer approval authority to the Options Clearing Corporation (OCC).
According to ETF analyst Eric Balchunas, the OCC is under pressure now and will likely list these ETFs soon. At this point, only the UK has the mandate to settle the ETF’s options menu.
consent These products would give Wall Street access to Bitcoin exchange-traded funds, increasing trading volume and potentially raising their prices.
A look at spot Bitcoin ETFs in the US
Unlike traditional assets, these spot Bitcoin ETFs blend the traditional features of options trading with the volatility of cryptocurrencies. Spot ETFs Allowing retail traders to participate in the cryptocurrency market without spending a lot. Most importantly, it enables individual traders to quickly buy and sell their shares in the open market.
Boom: The CFTC just dropped a notice paving the way for the listing of spot bitcoin ETF options. This is the second hurdle they have to cross after the SEC. The ball is now in OCC’s court and they are interested, so they will be looking at the roster very soon. pic.twitter.com/tRiwaPpoW4
– Eric Balchunas (@EricBalchunas) November 16, 2024
The Securities and Exchange Commission (SEC) approved the application to list these options on the CBOE and the New York Stock Exchange. According to the SEC, it has determined that Nasdaq’s experiment with the iShares Bitcoin Trust (IBIT) has been successful.
Analysts see CFTC Advisory. As a huge development for Bitcoin ETFs and cryptocurrency market. If spot BTC ETF options are listed, it will attract more investors, increasing the legitimacy of cryptocurrencies’ status.
BTC market cap currently at $1.81 trillion. Chart: TradingView.com
Will Bitcoin ETF options be listed soon?
Market experts and analysts expect this Bitcoin ETF options will be listed soon. According to Jeff Park of Bitwise Invest, BTC ETF options will dominate the cryptocurrency market.
Park believes the Securities Harmonization Bureau will act immediately on this request, but sees the end of 2004 as the most likely target for listing. However, he still believes that consent is flexible and that anything can happen.
British Hoddle, a popular Bitcoin commentator, estimates that approval and listing will come in the first quarter of 2025.
Spot ETH Options, Next?
With the growing possibility of listing spot BTC ETF options, many in the industry have floated the same idea for the Ethereum blockchain. One Twitter/X user, Austin, asked if Ether would follow suit.
Austin asked whether it would be possible to resubmit an earlier request today that Donald Trump be re-elected as the next president of the United States.
The SEC has already made a decision on ETH ETFs, saying it still needs expert judgment and public feedback. According to the agency, converting Ethereum into new products must comply with the country’s security laws.
Featured image from Blue Trust, chart from TradingView
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