Spot Bitcoin ETFs have overcome their biggest legal hurdle yet after the U.S. Commodity Futures Trading Commission (CFTC) clarified that it no longer plays a role in clearing BTC ETF options. In a staff notice dated November 15, the CFTC, through its Division of Clearing and Risk, announced that it was transferring approval authority to the Options Clearing Corporation (OCC).
According to ETF analyst Eric Balchunas, the OCC is currently under pressure and will likely list these ETFs soon. At this stage, only the OCC has the mandate to regulate the pricing of ETF options.
Approval of these products will give Wall Street access to spot Bitcoin ETFs, increasing trading volume and potentially driving up their price.
An Overview of Spot Bitcoin ETFs in the United States
Unlike traditional assets, these spot Bitcoin ETFs combine the conventional features of options trading with the volatility of cryptocurrencies. Spot ETFs allow retail traders to participate in the crypto market without spending a lot. More importantly, they allow individual traders to quickly buy and sell their stocks on the open market.
BOOM: The CFTC has just published a notice paving the way for the listing of Bitcoin ETF spot options. This is the second hurdle they had to clear after the SEC. The ball is now in OCC’s court and they are in it, so they will make a probing list very soon. pic.twitter.com/tRiwaPpoW4
– Eric Balchunas (@EricBalchunas) November 16, 2024
The Securities and Exchange Commission (SEC) has approved the application for listing of these options on the CBOE and the NYSE. According to the SEC, it has decided that Nasdaq’s experiment with iShares Bitcoin Trust (IBIT) was a success.
Analysts view the CFTC notice as a massive development for Bitcoin ETFs and the crypto market. If BTC ETF spot options are listed, they will attract more investors, further legitimizing the status of cryptocurrencies.
BTC market cap currently at $1.81 trillion. Chart: TradingView.com
Will Bitcoin ETF Options Be Listed Soon?
Market experts and analysts expect these Bitcoin ETF options to 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 late 2004 as the most likely target for listing. However, he still believes that approval is flexible and anything can happen.
British Hodl, a popular BTC commentator, believes that approval and listing will occur in the first quarter of 2025.
Spot ETH Options, Next?
With the growing possibility of BTC ETF spot options being listed, many in the industry have floated the same idea for the Ethereum blockchain. Twitter/X user Austin asked if Ether would follow suit.
Austin wondered if it would be possible to resubmit a previous application today stating that Donald Trump was just re-elected as the next president of the United States.
The SEC has already made a decision regarding ETH ETFs, saying they still need expert judgment and public comment. According to the agency, the transition of ETH to new products must comply with the country’s security laws.
Featured image from Blue Trust, chart from TradingView
