Bitcoin ETF Options May Hit Markets in Q4 2024
Bitcoin ETFs (exchange-traded funds) options may be available as early as the fourth quarter (Q4) of 2024, adding investment strategies for traders.
This speculation follows the successful launch of spot ETFs for Bitcoin (BTC) and Ethereum (ETH) in the US.
Analyst Sets Watch for Bitcoin ETF Options
In response to a question about when options for spot Bitcoin ETFs will be approved, James Seifert said Q4 this year. According to an ETF analyst, the deadline for a decision from the US Securities and Exchange Commission is around September 21.
He also emphasized that the decision will require input from other regulators, including the Office of the Options Clearinghouse (OCC) and the Commodity and Futures Trading Commission (CFTC).
“We think Bitcoin ETF options will happen in the 4th quarter of this year. The final deadline for the SEC decision is ~Sept. 21, but after that there are additional steps required from the OC and the CFTC,” commented Seifert.
According to Seifert, Bitcoin ETF options applications continue to improve. For example, the Chicago Board Options Exchange (CBOE) resubmitted a new and updated application after withdrawing its original submission. The CBOE provided 44 pages in the new filing, up from the previous 15, presumably for SEC feedback.
Another ETF analyst, Eric Balchunas, is also optimistic about Bitcoin ETF options. In his opinion, the meeting with the US SEC is a good sign. Nate Gerasi, president of ETF Storage, pointed out that there is options trading on some crypto derivatives ETFs (exchange-traded products).
Read more: Introduction to Crypto Options Trading
BeenCrypto reports that Nasdaq has already filed with the US SEC seeking to trade options on BlackRock's Spot Ethereum ETF, the iShares Ethereum Trust (ETHA). BlackRock recently submitted a proposal to list and trade the device.
Trading options provide flexibility, allowing the trader to choose how to execute the trade. They help protect against bankruptcy or allow speculation on the future value of the property. If Bitcoin ETF options enter the market, traders can explore new investment strategies.
“The benefit of the options, what they offer to the end investor in terms of downside hedging, exposure to risk-adjusted bitcoin, we believe will really help the end investor and the ecosystem,” CBOE Global Markets Head of Derivatives, Kathryn Clay, said.
Read more: 9 Best Crypto Options Trading Platforms
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