Speculations are rising about the addition of options features to spot Bitcoin exchange-traded funds (ETF) in the US market, with Bloomberg ETF analyst James Seyffart suggesting that it could happen as early as the third quarter. While the final deadline for a decision from the US Securities and Exchange Commission (SEC) is around Sep. 21, Seyffart mentioned the possibility of the offering starting in the fourth quarter. He pointed out 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 in these ETFs.
According to Seyffart, there are already 20 ETFs related to Bitcoin and Ethereum that have options, including leveraged products. However, just after his prediction, three exchanges — BOX Exchange, MIAX Pearl, and Miami International Securities Exchange — withdrew their applications to list spot Bitcoin ETF options. Despite this, senior Bloomberg ETF analyst Eric Balchunas reassured that major exchanges like the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) still have active applications in place for Bitcoin ETF options.
Nasdaq and BlackRock recently filed to add to the asset manager’s spot Ethereum ETF iShares Ethereum Trust (ETHA). The SEC is expected to provide comments within 21 days, with a final deadline likely around April 9, 2025. On a different note, Bitcoin ETFs saw a significant inflow of $45 million on Aug. 7, following two days of outflows. Despite Grayscale’s GBTC witnessing outflows of $30.7 million, BlackRock’s IBIT received $52.5 million in cash. Balchunas expressed surprise at the inflows, as he had anticipated continued outflows until Bitcoin ETFs had reduced their assets under management (AUM) by 2% to 3%.
Market Response and Future Prospects
The market response to the potential addition of options features to Bitcoin ETFs in the US has been mixed, with some withdrawals and new filings taking place. The involvement of major exchanges and regulatory approvals from key authorities will play a crucial role in shaping the future prospects of Bitcoin ETF options in the market. As the industry continues to evolve, investors and analysts will closely monitor developments to gauge the impact on the overall cryptocurrency market.
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