Key Takeaways
- CFTC has cleared the way for spot Bitcoin ETF options.
- Final approval now rests with the Options Clearing Corporation.
- Analysts predict Bitcoin ETF options could launch by early 2025.
The United States Commodity Futures Trading Commission (CFTC) has announced its position on spot Bitcoin ETF options, stating it no longer has a regulatory role in their clearing.
The Nov. 16 statement shifts responsibility to the Options Clearing Corporation (OCC), the sole issuer of equity options.
ETF analyst Eric Balchunas noted:
The ball is now in OCC’s court, and they are into it, so they’ll probably list very soon.
Final approval awaits OCC
The CFTC’s clearance follows prior approval from the Securities and Exchange Commission (SEC), marking this as the “second hurdle” for spot Bitcoin ETF options.
Analysts, including Bitwise’s Jeff Park, predict OCC approval could come quickly, potentially making these products available by the end of 2024.
Despite optimism, Park cautioned against assuming a definitive timeline, stating, “I wouldn’t short the odd” of a delay into 2025.
Anticipated market impact
Excitement surrounds the potential market impact of these products.
Derive founder Nick Forster highlighted how previous options-driven rallies in traditional markets could offer a glimpse of Bitcoin’s potential response.
He remarked:
When someone tries to do that with fixed supply BTC… look out.
Bitcoin commentator British Hodl estimates the products could launch in Q1 2025, adding to speculation on their timeline and impact.
