Bitcoin ETF Options Trading Could Begin By End of February

Last updated: January 20, 2024 2:27 AM

Published January 20, 2024 2:27 AM

Last updated: January 20, 2024 2:27 AM

Published January 20, 2024 2:27 AM

On January 19th, the SEC acknowledged proposals from Nasdaq and Cboe to allow options trading on recently approved Bitcoin ETFs.

Nasdaq aims to list options on the iShares Bitcoin Trust, while Cboe filed for options on six Bitcoin ETFs it launched earlier this month.

Cboe executive Catherine Clay called options “the next logical step” for Bitcoin ETFs, adding utility and risk mitigation.

The filings come shortly after the SEC approved Bitcoin ETF trading on January 10. Cboe’s options proposal was filed last week, but the timeline for approval remains uncertain.

Analyst James Seyffart remarked on the unusually fast timeline, estimating options trading may be approved by late February or September 21 at the latest.

The SEC has already acknowledged the 19b-4's requesting the ability to trade options on spot #Bitcoin ETFs. This is faster than SEC typically moves. Options could be approved before end of February if SEC wants to move fast?…

AT ABSOLUTE EARLIEST options still ~27+ days away pic.twitter.com/ohbvHgP2uO
— James Seyffart (@JSeyff) January 19, 2024

Overall, analysts view Bitcoin ETF options as a natural progression that would allow more sophisticated trading strategies.

Their timely proposal and potential swift approval reflect a growing appetite for regulated crypto investment vehicles amid Bitcoin’s price resurgence so far in 2023.