Bitcoin ETF Options on the Verge of Launch: CFTC Clearance Paves the Way

The path to Bitcoin ETF options has cleared another hurdle, with the Commodity Futures Trading Commission (CFTC) announcing it will no longer be involved in the clearing process. This leaves the Options Clearing Corporation (OCC) as the sole authority, and analysts believe the listing of these options could happen very soon.

"The ball is now in OCC's court," says ETF analyst Eric Balchunas, adding that the OCC is "into it" and will likely list the options "very soon."

This development follows the Securities and Exchange Commission's (SEC) approval of applications from the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE) to list spot Bitcoin ETFs in October. The CFTC's clearance represents the second major hurdle cleared, bringing the launch of these options closer than ever.

Crypto executives are optimistic about the potential impact of Bitcoin ETF options on the market. Derive founder Nick Forster points out that SoftBank's use of options significantly impacted the Nasdaq in 2020-2021, and believes a similar strategy with Bitcoin could lead to significant price fluctuations. While Bitwise Invest's Head of Alpha Strategies, Jeff Park, believes the OCC will act quickly, he acknowledges that approval by the year-end is not guaranteed. He expects the launch to happen sooner than many anticipate, but remains cautious about setting a definitive timeline.

Bitcoin commentator British Hodl estimates that the options will be listed in Q1 2025.

The launch of Bitcoin ETF options represents a significant milestone for the cryptocurrency industry, potentially attracting a wider range of investors and increasing liquidity in the market. The CFTC's clearance marks a crucial step towards realizing this potential, and the industry eagerly awaits the OCC's decision on the timeline for listing these options.