The United States Commodity Futures Trading Commission (CFTC) has taken a significant step towards the introduction of exchange-traded fund (ETF) options based on Bitcoin.
CFTC’s Position on Bitcoin ETF Options
On November 16, the CFTC issued a statement clarifying the Division of Clearing and Risk's (DCR) position, indicating that the agency no longer plays a role in clearing these options. The statement specified that all equity options are cleared and settled by the Options Clearing Corporation.
Optimism for Bitcoin Price Impact
Cryptocurrency executives are hopeful about the impact options trading might have on Bitcoin's price. Derive's founder Nick Forster cited SoftBank's options trading activities, which significantly influenced Nasdaq in 2020/2021, as an example of potential outcomes for Bitcoin.
Approvals and Timelines
ETF analyst Eric Balchunas noted that CFTC's clearance marked 'the second hurdle' for Bitcoin ETF options following prior approval from the Securities and Exchange Commission (SEC). Jeff Park of Bitwise Invest anticipates a swift response from the OCC but remains cautious about definitive timelines, highlighting early 2025 as a possibility.
CFTC has made significant progress towards introducing Bitcoin ETF options, likely to impact the market substantially. Subsequent actions by the OCC and other regulators will determine more precise timelines.
