Bitcoin ETF options coming ‘soon’ following CFTC clearance 

The U.S. Commodity Futures Trading Commission, through its Division of Clearing and Risk, issued an advisory stating that it will no longer have a role in clearing Bitcoin ETF options.

According to the prepared statement, the institution is transferring this responsibility to the Options Clearing Corporation.

“[..] In light of relevant precedents in the courts, it is highly likely that these spot commodity ETF shares will be held as securities. Therefore, DCR’s position is that the listing of these stocks on SEC-registered national securities exchanges does not affect the CFTC’s authority.”

CFTC staff advisory.

The OCC, which serves as the “exclusive issuer of all stock options” in the United States, now has the authority to decide whether to list those options, according to the commission.

Experts believe the OCC’s approval could come soon, with ETF analyst Eric Balchunas predicting it will happen “very soon.”

Meanwhile, market commentator Andrew said the CFTC’s action came much faster than expected, with approval initially expected towards the end of the first quarter of 2025, but this decision could speed things up.

While Bitwise Invest’s Jeff Park was optimistic about the chances of year-end approval, he suggested it “will not fall short.”

The recommendation follows the SEC’s approval last month of applications from the New York Stock Exchange and the Chicago Board Options Exchange to list and trade Bitcoin ETF options.

Option contracts give investors the right, but not the obligation, to buy or sell the underlying asset at a certain price before a certain date. The SEC believes that options trading can bring “better price efficiency” and “less volatility” to Bitcoin ETFs, making them more transparent and efficient overall while helping stabilize the market.

Bitcoin advocates see the approval of Bitcoin ETF options as a game changer that brings more liquidity to the market. See below.

Earlier this year, Grayscale CEO Michael Sonnenshein advocated for rapid approval of Bitcoin ETF options, saying the proposals could attract more players like broker-dealers and deepen Bitcoin’s ties to traditional finance.

Crypto influencer Mario Nawfal noted rumors about Bitcoin ETF options in a recent social media post, saying institutional investors are “drooling” over the opportunity.

BITCOIN SPOT ETF OPTIONS GET GREEN LIGHT

CFTC-approved Bitcoin spot ETF options and institutional investors are salivating.
⁰BlackRock’s Bitcoin ETF will trade as “IBIT” and everyone is excited for more “big fish” to come into play.

BTC rose to $91,000 after dropping to $87,100… pic.twitter.com/qJCtH7hJpm

— Roundtable by Mario Nawfal (@RoundtableSpace) 16 November 2024

“This is your main financial world, which now includes Bitcoin,” he wrote.

Bitcoin reacted positively to this development and broke the $91,000 resistance level it has been struggling with over the past two days. At press time, the flagship cryptocurrency was trading at $91,293, up 2.4%.