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According to Erik Balchunas, this was the “second hurdle” to approving Bitcoin ETF options.
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An ETF option gives you the right, but not the obligation, to buy or sell an ETF.
The US Commodity Futures Trading Commission (CFTC) announced that it is withdrawing from any role in clearing spot ETF options, paving the way for its listing.
The CFTC issued a notice “clearing the way” for spot Bitcoin exchange-traded fund (ETF) options, after the Securities and Exchange Commission (SEC) authorized the product on October 18, as reported by NoticiasVE.
“The CFTC no longer has any role with respect to the clearing of these options,” indicates the CFTC statement on November 16, through the Division of Clearing and Risk (DCR).
This means that Investors Could Soon Speculate on Future Bitcoin Price Through ETF Optionsexpanding the investment possibilities in this cryptocurrency.
An ETF option is a financial derivative other than spot ETFs. This is a contract that grants the right, but not the obligation, to buy or sell an ETF at a certain price at a future date. In this case it refers to shares registered as ETFs with the Securities and Exchange Commission (SEC). These ETF options are cleared and settled by the Options Clearing Corporation “as the sole issuer of all stock options,” as the document states.
Some analysts and investors are now speculating that the products could go public imminently.
According to analyst Eric Balchunas, Bitcoin ETF options “will be trading very soon” and now it all depends on the Options Clearing Corporation. “This is the second obstacle they needed to overcome after the SEC,” he adds in his X post.
“We anticipate that Bitcoin ETF options will arrive sooner than expected,” said Jeff Park, director of Alpha strategies at Bitwise Invest. Park explained that, given the CFTC’s go-ahead and with the OCC about to make a decision, “the OCC will act very quickly.”
However, the executive considers an approval for the end of 2024 “optimistic”, and does not see it as an absolute guarantee at this time.
Although the SEC has already approved Bitcoin spot ETF options, it delayed its decision on a similar product for ether (ETH) a week ago. There is speculation that the decision may be linked to Donald Trump’s recent victory in the presidential battle.