The United States Commodity Futures Trading Commission (CFTC) has issued a notice, “clearing the way” for spot Bitcoin exchange-traded fund (ETF) options. Analysts are now speculating the products could be listed imminently.
“Ball now in OCC’s court, and they are into it, so they’ll prob list very soon,” ETF analyst Eric Balchunas wrote in a Nov. 15 X post.
CFTC steps back from any further ‘role’
“Here. We. Go,” ETF analyst James Seyffart added.
The CFTC’s Nov. 16 statement announced the Division of Clearing and Risk’s (DCR’s) position “that the CFTC does not have any more role regarding the clearing of these options.”
The CFTC stated the listing of spot Bitcoin ETF options “does not implicate” its jurisdiction. Source: CFTC
“These ETF options are cleared and settled by the Options Clearing Corporation as the sole issuer of all equity options,” it stated.
Crypto executives are optimistic it could have a major impact on Bitcoin’s (BTC) price.
Derive founder Nick Forster pointed out in a Nov. 15 X post that Investment firm SoftBank “literally pumped the Nasdaq in 2020/2021 by yeeting options in multiple multi-hundred-billion dollar names.”
“When someone tries to do that with fixed supply BTC… look out,” Forster claimed.
Bitcoin ETF options will come ‘sooner than you think’
Balchunas explained this was “the second hurdle” spot Bitcoin ETF options needed “to clear” after gaining approval from the Securities and Exchange Commission.
Bitwise Invest's Head of Alpha Strategies, Jeff Park, stated that with the CFTC providing clearance and the OCC next in line, "Bitcoin ETF options are sooner than you think."
Related: Goldman Sachs holds $710M in Bitcoin ETFs — SEC filing
Park explained that while he expects the OCC to act “very quickly” and believes the end of 2024 is “optimistic,” he wouldn’t consider approval by the year-end an absolute certainty at this stage.
“I wouldn't short the odd,” Park added.
Bitcoin commentator British Hodl told their 76,000 X followers that “Q1 is my estimate.”
On Oct. 18, the SEC approved applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list the long-anticipated options for spot Bitcoin ETFs.
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