While the SEC has already allowed options trading on Bitcoin ETFs (BTC), the CFTC has now given its opinion. The latter suggests an imminent launch of these financial tools.
Home stretch for Bitcoin ETF options
Last September, the Securities and Exchange Commission (SEC) authorized trading for options on BlackRock's spot Bitcoin (BTC) ETF. By creating a precedent, this opened the way for greater democratization of cryptocurrencies within traditional finance.
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However, a possible listing still had to be subject to the opinions of the Commodity Futures Trading Commission (CFTC), through the Division of Clearing and Risk (DCR), as well as the Options Clearing Corporation (OCC).
As for the CFTC's DCR, the latter gave its point of view on the issue at the end of last week. With regard to the construction of these products, the authority considers that this rather falls within the remit of the SEC :
The opinion states that, given relevant court precedents, it is highly likely that these spot commodity ETF options would be considered securities. Therefore, the position of the DCR is that the listing of these options on national securities exchanges registered with the SEC does not imply the jurisdiction of the CFTC and, therefore, the clearing of these options by the OCC would be carried out in its capacity as a registered clearing agency subject to supervision by the SEC.
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In summary, this means that the ball is now in the OCC's court, as explained by Bloomberg ETF analyst Eric Balchunas.
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Once the OCC delivers its verdict, it will be interesting to see how Bitcoin reacts at that time. More importantly, a look at ETF inflows will reveal the sentiment of institutional investors if approved.
In the meantime, BTC is trading at $90,200 at the time of writing, down slightly by 0.6% in 24 hours.
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Source: CFTC
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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