Spot Bitcoin ETFs hurdle its biggest legal roadblock to date after the US Commodity Futures Trading Commission (CFTC) clarified that it’s no longer taking a role in clearing BTC ETF options. In a staff advisory dated November 15th, the CFTC, through its Division of Clearing and Risk, announced that it was transferring the approving authority to the Options Clearing Corporation (OCC).
According to ETF analyst Eric Balchunas, the OCC is under pressure now and will probably list these ETFs soon. At this point, only the OCC has the mandate to settle the listing of the ETF options.
Approval of these products will give Wall Street access to spot Bitcoin ETFs, increasing trading volume and potentially pushing their price.
A Look At Spot Bitcoin ETFs In The US
Unlike traditional assets, these spot Bitcoin ETFs blend the conventional features of options trading with the volatility of cryptocurrencies. Spot ETFs allow retail traders to participate in the crypto market without spending much. More importantly, they enable individual traders to quickly buy and sell their shares in the open market.
BOOM: The CFTC just dropped a notice clearing the way for spot bitcoin ETF options to be listed. This is the second hurdle they needed to clear after the SEC. Ball now in OCC’s court and they are into it, so they’ll prob list very soon. pic.twitter.com/tRiwaPpoW4
— Eric Balchunas (@EricBalchunas) November 16, 2024
The Securities and Exchange Commission (SEC) has approved the application to list these options on the CBOE and the NYSE. According to the SEC, they decided that Nasdaq’s experience with iShares Bitcoin Trust (IBIT) was successful.
Analysts see the CFTC advisory as a massive development for Bitcoin ETFs and the crypto market. If the spot BTC ETF options are listed, they will attract more investors, further legitimizing the standing of cryptocurrencies.
BTC market cap currently at $1.81 trillion. Chart: TradingView.com
Bitcoin ETF Options To Be Listed Soon?
Market experts and analysts expect these Bitcoin ETF options to be listed soon. According to Jeff Park of Bitwise Invest, these BTC ETF options will dominate the cryptocurrency market.
Park thinks the OCC will act immediately on this request but sees the end of 2004 as the most likely target for listing. However, he still believes that approval is flexible and that anything can happen.
British Hodl, a popular BTC commentator, estimates that the approval and listing will come this first quarter of 2025.
Spot ETH Options, Next?
With a growing possibility that the spot BTC ETF options will be listed, many in the industry have floated the same idea for the Ethereum blockchain. One Twitter/X user, Austin, asked if Ether would follow suit.
Austin wondered if it would be possible to re-submit a previous application today stating that Donald Trump has just be reelected as the next US president.
The SEC has already decided on ETH ETFs, saying they still need expert judgment and public comments. According to the agency, the transition of ETH into new products must comply with the country’s security laws.
Featured image from Blue Trust, chart from TradingView
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