Options on Bitcoin exchange-traded funds (ETFs) are likely to launch in the United States by the first quarter of 2025, according to Bloomberg Intelligence analyst James Seyffart.

Bloomberg Analysts' Predictions

James Seyffart, a Bloomberg Intelligence analyst, stated that the launch of Bitcoin ETF options could occur before the end of the current year but is more likely by the first quarter of 2025. He made this statement during an October 9 panel discussion at the Permissionless conference.

Regulatory Hurdles and Prospects

In September, the US Securities and Exchange Commission (SEC) authorized the listing of options tied to BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT). However, final signoffs are awaited from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). Unlike SEC rules, the CFTC and OCC do not have strict deadlines, which may delay the process.

Impact on Investment Markets

According to Jeff Park from Bitwise Invest, listing Bitcoin options on regulated US exchanges creates new opportunities for investors by safeguarding them against counterparty risks. Financial advisers, who control significant investment flows in the ETF market, use options to hedge against sharp market movements, which could lead to more widespread use of such instruments.

The anticipated launch of Bitcoin ETF options in the US could mark a significant step in integrating cryptocurrencies into financial markets, providing new opportunities for investors while managing risks.