OCC is ‘preparing’ for listing of spot Bitcoin ETF options

US Options Clearing Corporation announces it is “preparing” to list options on spot Bitcoin exchange-traded funds

On November 18, the OCC issued an update accepting the Commodity Futures Trading Commission’s recommendation regarding approval of Bitcoin (BTC) ETF options. This follows the U.S. Securities and Exchange Commission’s approval of options on BlackRock’s iShares Bitcoin Trust on September 20, 2024, and another approval from the Commodity Futures Trading Commission.

As crypto.news reported, the CFTC’s Clearing and Risk Division provided guidance on clearing options on spot commodity exchange-traded funds on November 15.

The OCC’s response relates to CFTC approval of spot Bitcoin ETF options.

“Based on this recommendation, the OCC is preparing for the liquidation, resolution, and risk management of such options,” the Chicago-based clearinghouse wrote.

This news excited the crypto community, which has remained vibrant since November 5, when the United States elected pro-cryptocurrency Donald Trump as president. Bitcoin price, which was just below $90,000 before the OCC announcement, rose above $92,650. The benchmark crypto asset was trading around $91,400 at the time of writing.

Amid this development, optimistic sentiment is likely to strengthen, especially as demand for crypto investment products increases. Bloomberg’s senior ETF analyst Eric Balchunas said in a statement via X that investors who want to take advantage of the opportunity offered by Bitcoin ETF options may not have to wait too long.

“It’s a wrap,” Balchunas said. “Now it’s just a matter of when.”

Once the OCC gives its approval signal, the listing process is generally simple and quick, according to the ETF expert. He noted that in most cases this happens “within a few days.”

In trading, options are a financial derivative instrument that provides contracts that allow financial products, such as stocks or ETFs, to be bought or sold at a specific price and time. As a clearing and settlement company for U.S.-listed options, OCC manages millions of financial contracts. Spot Bitcoin ETF options are set to be added to this list.