Bloomberg Predicts Launch of BTC-ETF Options in Q4

The SEC may register options for spot BTC-ETFs in the fourth quarter. The deadline for the decision is September 21, but further steps from the OCC and the CFTC will be required, according to Bloomberg analyst James Seyffart.

We think the #Bitcoin ETF options happen in 4th quarter this year. Final deadline for SEC decision is ~Sept. 21 but there’s more steps needed after that from OCC & CFTC.

Here are some BTC & ETH related ETFs including leveraged that already have options. cc @EricBalchunas https://t.co/xErD5oPiWb pic.twitter.com/USauv6QaFs

— James Seyffart (@JSeyff) August 8, 2024

The specialist responded to the withdrawal of an application by the CBOE for launching the instrument.

This move followed similar actions by three smaller competitors — the Miami International Securities Exchange, MIAX PEARL, and BOX. Besides CBOE, Nasdaq and the NYSE are also involved in the process.

Seyffart believes there is “definitely some movement” regarding options for spot BTC-ETFs.

UPDATE: There’s definitely some movement on Bitcoin ETF options.

CBOE just withdrew their application for options on spot #Bitcoin ETFs. Which sounds like a bad thing at first… But at the same time they just re-filed a brand new and updated application https://t.co/L8qYTDXzPb pic.twitter.com/8BQG6JMROn

— James Seyffart (@JSeyff) August 8, 2024

“At first, it sounds like a bad thing. […] But at the same time they just re-filed a completely new and revised application,” commented the expert.

The analyst highlighted that in the updated form, CBOE proposes to amend rules to allow the exchange to list and trade options on BTC-ETFs from Fidelity, Ark Invest/21Shares, Invesco, Franklin Templeton, VanEck, WisdomTree, Grayscale, Bitwise, BlackRock, and Valkyrie.

In the application filed in January, the issuers of the underlying instruments were not specified.

“The initial application was 15 pages. The new one has more ‘meat’ — 44 pages. Does this mean the SEC gave some feedback? It seems related to position limits and market manipulation issues,” speculated the specialist.

What does this mean?

The original filing was only 15 pages. This new one has a lot more meat to it at 44 pages. To me it means that the SEC likely gave some sort of feedback? Which looks like it was related to position limits and market manipulation concerns pic.twitter.com/65TL44c29i

— James Seyffart (@JSeyff) August 8, 2024

Seyffart was supported by colleague Eric Balchunas.

“Just as ‘comments from the SEC’ was a good sign for our ETF approval odds, we think this is a good sign here too. If they were just going to deny outright, why bother engaging at all?” noted the analyst.

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

Unlike Seyffart, Balchunas found it difficult to predict the possible approval timeline for the instrument but promised to provide regular updates.

Hard to tell the timing. We’re nosing around now and will update as appropriate.

— Eric Balchunas (@EricBalchunas) August 9, 2024

Earlier, on August 8, NYSE approached the SEC with a proposal to amend rules allowing it to list and trade options based on spot Ethereum-ETFs from Bitwise and Grayscale.