bitcoin Spot ETFs Clear Their Biggest Legal Hurdle Yet After the US Commodity Futures Trading Commission (CFTC) Clarified It No Longer Plays a Role in btc ETF Options Clearing . In a staff notice dated November 15, the CFTC, through its Risk and Clearing Division, announced that it was transferring approval authority to the Options Clearing Corporation (OCC).
According to ETF analyst Eric Balchunas, the OCC is under pressure now and will likely list these ETFs soon. At this time, only the OCC has the mandate to resolve ETF options pricing.
<a target="_blank" href="https://www.marketsmedia.com/cftc-clears-way-for-spot-bitcoin-etf-options/” target=”_blank” rel=”noopener nofollow”>Approval of these products will give Wall Street access to spot bitcoin ETFs, increasing trading volume and potentially boosting its price.
A look at US spot bitcoin ETFs
Unlike traditional assets, these spot bitcoin ETFs combine the conventional features of options trading with the volatility of cryptocurrencies. Spot ETF Allowing retail traders to participate in the crypto market without spending much. More importantly, they allow individual traders to quickly buy and sell their stocks on the open market.
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BOOM: The CFTC just published a notice clearing the way for bitcoin spot ETF options to be included. This is the second hurdle they had to overcome after the SEC. The ball is now in OCC's court and they are interested, so they will probably make the list very soon. pic.twitter.com/tRiwaPpoW4
– Eric Balchunas (@EricBalchunas) <a target="_blank" href="https://twitter.com/EricBalchunas/status/1857589224238674207?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>November 16, 2024
The Securities and Exchange Commission (SEC) 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 Notice as a massive development for bitcoin ETFs and the cryptocurrency market. If btc ETF spot options are listed, they will attract more investors, further legitimizing the cryptocurrency's position.
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btc market cap currently at $1.81 trillion. Chart: TradingView.com
bitcoin ETF Options Coming Soon?
Market experts and analysts expect these bitcoin ETF options will be listed soon. According to Jeff Park of Bitwise Invest, these btc ETF options will dominate the cryptocurrency market.
Park believes the OCC will act immediately on this request, but considers the end of 2004 the most likely target for listing. However, he still believes that approval is flexible and that anything can happen.
The British Hodl, a popular btc commentator, estimates that approval and listing will occur this first quarter of 2025.
Spot eth options next?
With a growing possibility of btc ETF spot options being included, many in the industry have floated the same idea for the ethereum blockchain. One twitter/x user, Austin, asked if Ether would do the same.
Austin wondered if it would be possible to resubmit an earlier application today claiming that Donald Trump has just been re-elected as the next president of the United States.
The SEC has already made up its mind about eth ETFs, saying they still need expert judgment and public comment. According to the agency, the transition of eth to new products must comply with the country's security laws.
Featured image of Blue Trust, TradingView chart
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