Options on spot Bitcoin ETFs are expected to be available by Q1 2025, according to Bloomberg analyst James Seyffart. This new product could boost Bitcoin adoption among institutional investors, providing additional tools to manage volatility and protect portfolios.
Options on spot Bitcoin ETFs are expected to launch in the coming months.
Bitcoin-based spot ETFs have been wildly successful, being among the most successful launches in ETF history, with nearly $19 billion in net flows in just 10 months. These US ETFs now manage 946,000 BTC, or approximately $59 billion.
In September 2024, the Securities and Exchange Commission (SEC) approved options trading on BlackRock's spot Bitcoin ETF. These options strengthen the integration of Bitcoin into the financial sector. Although they do not confer the benefits of censorship resistance specific to Bitcoin, they help attract more capital and facilitate its access to investors.
🪙 To go further – Spot Bitcoin ETFs explained: everything you need to know
Recently, Bloomberg analyst James Seyffart said he expected full approval and launch of options on the iShares Bitcoin Trust (IBIT) by early 2025.
Speaking at the Permissionless conference, he said:
“I think it's possible that the options will arrive before the end of the year, but it's more likely that it will be in the 1st quarter of 2025.”
Although these options have been validated by the United States SEC, they still need to be approved by the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
Unfortunately, no precise date can be brought forward, because these 2 organizations do not have imposed deadlines. As James explained:
“Unlike SEC rules, the CFTC and OCC do not have strict deadlines, so they could delay further if they wanted. »
Thus, the analyst predicts that final approval could still take a few months.
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What do options bring to Bitcoin?
Options are financial contracts offering the buyer the right, but without obligation, to buy (call) or sell (put) an asset at a determined price before a deadline. To access this right, the investor must pay a “premium” to the seller.
By allowing Bitcoin to be bought or sold at a fixed price, options offer the possibility of limiting losses or securing gains. The investor can decide not to exercise the option if the market becomes unfavorable, thus limiting his risk to the premium paid.
📰 Also read in the news – Ethereum spot ETF: 0 dollars in net volume for the 2nd day of the week – Why are they not attractive?
Thus, the introduction of options on Bitcoin ETFs could also attract a larger number of institutional investors, who could use this tool to manage risks and protect their capital in the face of BTC volatility, strengthening the integration of Bitcoin into traditional finance and increasing its liquidity.
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Source: Permissionless
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First attracted by the lure of gain, I am now trapped deep into the rabbit hole. With no way out, I just have to share my knowledge and convey the passion I have for Bitcoin. I am also the creator of Adopt a Block, an educational site dedicated to Bitcoin.
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