The Options Clearing Corporation (OCC) announced its readiness to handle the clearing and settlement of options linked to spot Bitcoin ETFs. This development follows a recommendation from the Commodity Futures Trading Commission (CFTC), which confirmed that these products are under the jurisdiction of the US Securities and Exchange Commission (SEC).
Nasdaq and the debut of Bitcoin options
On November 18, the OCC confirmed its readiness to manage the “clearing, settlement, and risk management process” of options related to spot Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT). Alison Hennessy, head of listed products at Nasdaq, noted that IBIT options could begin trading as soon as November 19.
The CFTC clarified that the OCC, as the sole issuer of equity options supervised by the SEC, will handle these products without entering the CFTC’s regulatory purview. This framework regulates options listed on SEC-registered exchanges, reinforcing the legality of listing.
Growth of Bitcoin ETFs
Since their approval in January, Bitcoin spot ETFs have amassed a trading volume of over $500 billion. BlackRock’s IBIT leads the market with two-thirds of all activity. Nasdaq updated options release dates to reflect a Nov. 19 possible debut.
According to ETF analyst Eric Balchunas, the process to list these options is in its final stages, describing the launch as “a question of when, not if.”
Impact on the Cryptocurrency market
Options on Bitcoin ETFs will appeal to both retail and institutional investors. While retailers usually use them for speculation, institutional ones use them as hedging tools. Given the strong retail interest in Bitcoin, analysts anticipate elevated activity in these options, possibly outperforming traditional stocks.
The OCC’s preparation and recent CFTC guidelines, along with support from Nasdaq, mark a milestone in the US crypto market, opening a new era for spot Bitcoin ETFs and their derivatives.
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