The possibility of adding options features to Bitcoin (BTC) exchange-traded funds (ETFs) in the US has been a topic of discussion among experts. According to Bloomberg ETF analyst James Seyffart, there is a likelihood that these features will be introduced in the fourth quarter. However, Seyffart also mentioned in a post that the offering could potentially begin as early as the third quarter. The final deadline for a decision from the US Securities and Exchange Commission (SEC) is set for approximately September 21st, which could impact the timeline for the introduction of options features.
Seyffart emphasized that the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) would also need to approve the inclusion of options features in Bitcoin ETFs. Currently, there are already 20 ETFs related to Bitcoin and Ethereum (ETH) that have options, including leveraged products. Despite these developments, three exchanges — BOX Exchange, MIAX Pearl, and Miami International Securities Exchange — recently withdrew their applications to list spot Bitcoin ETF options. However, senior Bloomberg ETF analyst Eric Balchunas noted that these are relatively smaller exchanges, while major entities such as the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) still have active applications in progress.
On August 7th, Nasdaq and BlackRock filed to add spot Ethereum ETF iShares Ethereum Trust (ETHA) to the asset manager’s offerings. The SEC is expected to provide comments on the matter within 21 days, with a final deadline likely by April 9, 2025. Nasdaq also referenced other commodity ETFs with options listed on its platform, such as BlackRock’s iShares COMEX Gold Trust and the iShares Silver Trust. Despite two consecutive days of outflows, Bitcoin ETFs saw $45 million in inflows on August 7th. This influx of funds came as a surprise to some, as experts had anticipated continued outflows until Bitcoin ETFs reduced their assets under management (AUM) by 2% to 3%. However, only a 0.5% decrease was recorded, even as BTC experienced a 21% decline on the weekly timeframe.
The potential addition of options features to Bitcoin ETFs in the US presents both opportunities and challenges for investors and regulatory bodies. As the market continues to evolve and adapt to new financial instruments, the introduction of options could further enhance the trading landscape for cryptocurrencies. It remains crucial for stakeholders to closely monitor regulatory developments and market trends to make informed decisions regarding their investment strategies.
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