Bitcoin ETF (exchange-traded funds) options could be available as soon as the fourth quarter (Q4) of 2024, increasing the range of investment strategies for traders.
This speculation comes after the successful launches of spot ETFs for Bitcoin (BTC) and Ethereum (ETH) in the US.
Analyst Sets Clock for Bitcoin ETF Options
Responding to a question on when options will be approved for spot Bitcoin ETFs, James Seyffart said Q4 this year. According to the ETF analyst, the final deadline for a decision from the US Securities and Exchange Commission is around September 21.
He also highlighted that the decision would require input from other regulators, including the Options Clearing Office (OCC) and the Commodities and Futures Trading Commission (CFTC).
“We think the Bitcoin ETF options happen in the 4th quarter of this year. The final deadline for the SEC decision is ~Sept. 21 but there’s more steps needed after that from OCC and CFTC,” Seyffart commented.
According to Seyffart, Bitcoin ETF options applications continue to make progress. For example, the Chicago Board Options Exchange (CBOE) re-filed a new and updated application after withdrawing its first submission. The CBOE presents 44 pages in the new filing, unlike the previous 15, possibly in response to SEC feedback.
Another ETF analyst, Eric Balchunas, is also optimistic about Bitcoin ETF options. In his opinion, engagement with the US SEC is a good sign. President of the ETF Store, Nate Geraci, highlighted the existence of options trading on some crypto derivatives ETPs (exchange-traded products).
Read more: An Introduction to Crypto Options Trading
As BeInCrypto reported, the Nasdaq has already filed with the US SEC, seeking to offer options trading on BlackRock’s Spot Ethereum ETF, , the iShares Ethereum Trust (ETHA). BlackRock also recently submitted a proposal to list and trade the instrument.
Trading options provide flexibility, allowing the trader to choose whether to execute the trade. They help protect against losses or allow speculation on an asset’s future price. If Bitcoin ETF options enter the market, traders could explore new investment strategies.
“We believe that the utility of the options, what they provide to the end investor in terms of downside hedging, risk-defined exposures into bitcoin, really would help the end investor and the ecosystem.” CBOE Global Markets’ head of derivatives, Catherine Clay, said.
Read more: 9 Best Crypto Options Trading Platforms
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