It has been reported by Bloomberg ETF analyst James Seyffart that options features are likely to be incorporated into Bitcoin exchange-traded funds (ETFs) in the United States. The anticipated timeframe for this addition is set for the fourth quarter, although Seyffart mentioned that it could potentially commence in the third quarter. The final decision from the US Securities and Exchange Commission (SEC) is expected around September 21. Seyffart emphasized that while the technical note indicated the second half of 2024 for this development, there is a possibility of an expedited process beyond that point.
In addition to the SEC’s approval, the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) must also greenlight the inclusion of options features in Bitcoin ETFs. Currently, there are 20 ETFs related to Bitcoin and Ethereum that already offer options, including leveraged products. Despite some setbacks with exchanges such as BOX Exchange, MIAX Pearl, and Miami International Securities Exchange withdrawing their applications for spot Bitcoin ETF options, major players like the New York Stock Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE) are actively pursuing this initiative.
On a related note, Nasdaq and BlackRock recently filed to expand their spot Ethereum ETF, iShares Ethereum Trust (ETHA). The SEC has a 21-day window to provide feedback on the matter, with a possible final deadline around April 9, 2025. Nasdaq highlighted the presence of other commodity ETFs with listed options on its platform, such as BlackRock’s iShares COMEX Gold Trust and the iShares Silver Trust.
Despite two days of consecutive outflows, Bitcoin ETFs witnessed a notable $45 million in inflows on August 7. This influx of capital occurred amidst Grayscale’s GBTC experiencing outflows of $30.7 million, while BlackRock’s IBIT received $52.5 million in cash. The unexpected nature of these inflows surprised senior Bloomberg ETF analyst Eric Balchunas, who initially anticipated continued outflows until Bitcoin ETFs had reduced their assets under management (AUM) by 2% to 3%. However, only a 0.5% reduction was recorded, despite BTC facing a 21% decline on a weekly basis.
The addition of options features to Bitcoin ETFs in the US represents a significant development in the cryptocurrency investment landscape. Regulatory approvals, market trends, and evolving ETF offerings all play a crucial role in shaping the future of digital asset investments.
