Bitcoin ETF Options Expected to Trade by Year-End
Regulatory bodies are finally addressing applications to list options on spot Bitcoin (BTC) exchange-traded funds (ETFs).
Options contracts allow traders to buy or sell contracts granting the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame.
According to Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas, there is a 70% chance these options will start trading on US exchanges by the end of this year.
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Despite the introduction of BTC ETFs earlier this year, options trading remains crucial for institutional investors, especially given the volatility of crypto ETFs.
The three US exchanges offering spot BTC ETFs— NYSE Arca, Cboe, and Nasdaq—requested permission from the Securities and Exchange Commission (SEC) to list options on these funds in January, yet faced multiple delays as the SEC sought additional information.
Progress was made on August 8, when Cboe submitted an updated application. In response to the new filing, Seyffart noted:
There’s definitely some movement on Bitcoin ETF options. CBOE just withdrew their application for options on spot Bitcoin ETFs. Which sounds like a bad thing at first… But at the same time, they just re-filed a brand new and updated application <...>. To me, it means that the SEC likely gave some sort of feedback?
The launch of Bitcoin ETF options is expected to make these ETFs even more appealing to institutional investors, representing an essential step toward the mass adoption of cryptocurrencies.
In other news, Brazil’s Securities and Exchange Commission (CVM) approved the world’s first spot Solana ETF last week.
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
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