Bitcoin ETF Spot Options Could Be Approved by December 2024
Date: 2024-02-02 Author: Dima Zakharov Categories: BLOCKCHAIN
The Waiting Game: According to Reuters, the road to regulatory approval for Bitcoin ETF spot options might be a lengthy one, potentially taking anywhere from two to ten months. This timeline hints at a possible approval window stretching between April and December 2024. The extended timeline is primarily due to the need for approval from not just one but two regulatory bodies, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This dual approval process adds complexity and potential hurdles on the regulatory front.
Ongoing Delays: Reuters' sources reveal that delays persist, with no established regulatory process in sight. One undisclosed source mentioned that CFTC is currently addressing jurisdictional and oversight issues, while another source noted that exchange leaders plan to meet with CFTC in the near future.
Cboe's Monthly Schedule: Cboe, one of the three exchanges planning to list these options, is following a monthly schedule. On their website, they state their intention to list spot options later in 2024.
Differing Expert Opinions: The extended approval timelines differ from earlier expectations. Bloomberg ETF analyst James Seyffart had previously speculated that the SEC might decide on spot Bitcoin ETF options as early as February and no later than September. He also assumed that the SEC would swiftly approve some applications. Seyffart made these assumptions when the SEC opened comments on certain applications on January 19. However, his estimates seemingly did not account for the potential involvement of CFTC, as reported by Reuters today.
Final SEC Decision: Ultimately, only the SEC's decision is required. They are not obligated to approve any proposals and may instead issue rejections.
New Investment Opportunity: Spot options offer investors a fresh avenue to access spot Bitcoin ETFs. By investing in options, investors can participate in trading with borrowed funds, potentially yielding higher returns, albeit with increased risk. This development adds a layer of excitement and anticipation in the world of cryptocurrency as enthusiasts eagerly await the regulatory green light for Bitcoin ETF spot options.
