As the financial world adjusts to the recent launch of spot Ethereum ETFs, investors are turning their attention to the next potential milestone in cryptocurrency products: spot Bitcoin ETF options.
According to leading analysts, these options could come to market earlier than expected, with a 70% chance of being available before 2025.
Bitcoin ETF options would allow investors to buy or sell Bitcoin at a predetermined price on a specific date, offering a simplified process similar to call options for stocks. This would eliminate the need for investors to navigate crypto-specific platforms like Bybit and expand access to the burgeoning cryptocurrency world.
Bloomberg Intelligence analysts Eric Balchunas and James Seyffart predict that Bitcoin ETF options are likely to be launched by the end of this year. Speaking during a recent webinar, Seyffart explained that the existence of options for Bitcoin and various other Ethereum-related ETFs suggests that the Securities and Exchange Commission (SEC) is unlikely to block the launch of Bitcoin ETF options.
“There are a bunch of ETFs that hold derivatives of Bitcoin. Covered call Bitcoin, leveraged Bitcoin, leveraged Ethereum, actively managed ETFs, they all have options already,” Seyffart said.
He added that there is significant demand for these products and there is no apparent reason for the SEC to deny their approval.
However, the SEC is not the final hurdle in the approval process. Once the SEC grants approval, the application goes to the Options Clearing Corporation (OCC) and eventually the Commodity Futures Trading Commission (CFTC). Unlike the SEC, neither the OCC nor the CFTC have set deadlines for completing the approval process.
Seyffart also noted that some gold ETFs that have been around since the 1990s still do not have options, while some platinum ETFs have been awaiting approval since 2010. Despite these examples, analysts remain optimistic about the future of Bitcoin ETF options.
The Chicago Board Options Exchange (CBOE) recently withdrew and then promptly resubmitted its application for Bitcoin ETF options. The revised application, now 44 pages long compared to the original 15 pages, shows that the SEC has responded, which analysts see as a positive sign.
“We think this is a good sign, just as ‘comments from the SEC’ are a good sign for our ETF approval prospects,” Balchunas said on social media platform X. “Because if they’re going to just reject it outright, why bother looking at it at all?”
*This is not investment advice.
