The long-anticipated addition of options features to Bitcoin exchange-traded funds (ETFs) in the United States is likely to occur in the fourth quarter, according to Bloomberg ETF analyst James Seyffart. However, Seyffart also mentioned the possibility of this development taking place as early as the third quarter, with a final decision from the US Securities and Exchange Commission (SEC) expected around September 21. He emphasized the importance of regulatory approvals from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) for the inclusion of these options.
Seyffart highlighted that there are already 20 ETFs related to Bitcoin and Ethereum that have options, including leveraged products. Despite this, recent developments saw three smaller exchanges, namely BOX Exchange, MIAX Pearl, and Miami International Securities Exchange, withdrawing their applications to list spot Bitcoin ETF options. However, major players like the New York Stock Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE) continue to pursue their applications in this space.
In a related move, Nasdaq and BlackRock filed to expand the offerings of the iShares Ethereum Trust (ETHA) by adding a spot Ethereum ETF. The SEC will have 21 days to provide comments on this filing, with a final decision expected around April 9, 2025. Nasdaq referenced other commodity ETFs with listed options on its platform, such as BlackRock’s iShares COMEX Gold Trust and the iShares Silver Trust, indicating a growing interest in expanding investment options in the cryptocurrency space.
Despite recent outflows from Bitcoin ETFs, totaling $45 million on August 7, there were surprising inflows recorded. While Grayscale’s GBTC saw outflows of $30.7 million, BlackRock’s IBIT received $52.5 million in cash. Bloomberg ETF analyst Eric Balchunas expressed surprise at the inflows, as he had expected continued outflows until Bitcoin ETF AUM had decreased by 2-3%. However, only a 0.5% reduction was observed, even as Bitcoin experienced a 21% drop in value over the course of a week.
The introduction of options features to Bitcoin ETFs in the US is a significant development that could potentially reshape the cryptocurrency investment landscape. With major exchanges and regulatory bodies involved in the process, the future of Bitcoin and Ethereum ETFs with options appears to be on the horizon, offering investors a wider range of investment choices in the digital asset space.
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