After the launch of spot Bitcoin ETF in January, Bitcoin ETF options are set to launch before this year’s end. During the launch of spot Bitcoin ETF, the three exchanges that list it asked the SEC if they could also list options on those funds, which the SEC didn’t respond to then.
After several months, the SEC was urged to consider the approval of Bitcoin ETF options, which was followed by an amended application from Cboe to the SEC outlining how they would address issues such as market manipulation and position limits.
With this, the SEC demanded time to look into the matter, and they are set to decide on September 21. Some experts have expressed optimism about the approval of the Bitcoin ETF options before the end of the year due to pressure from the US election.
Senior analyst Eric Balchunas commented on X that the SEC’s reply to the Cboe amended filing is encouraging, comparing it to the approval of Bitcoin ETF.
Just as “comments from the SEC” was a good sign in our ETF approval odds we think this is good sign here too. Bc if they were just gonna deny outright why bother engaging at all? https://t.co/CPAOl5eU3f
— Eric Balchunas (@EricBalchunas) August 8, 2024
But what exactly are Bitcoin ETF options, and how will the approval affect the market? Bitcoin ETF options represent the right to buy or sell Bitcoin ETF at an agreed-upon price for a specific period.
The approval of spots Bitcoin ETF in January has brought over $16 billion in inflow to the crypto market; the approval of Bitcoin ETF options will also bring in a similar amount of inflow to Bitcoin and the crypto market.
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