The SEC may register options for spot BTC-ETFs in the fourth quarter. The deadline for making a decision expires on September 21, but after that, several more steps will be required from the OCC and the CFTC, Bloomberg analyst James Seyffart said.
We think the #Bitcoin ETF options happen in 4th quarter this year. Final deadline for SEC decision is ~Sept. 21 but there's more steps needed after that from OCC & CFTC.
Here are some BTC & ETH related ETFs including leveraged that already have options. cc @EricBalchunas https://t.co/xErD5oPiWb pic.twitter.com/USauv6QaFs
The specialist responded to the CBOE's withdrawal of the application to launch the tool.
The move followed similar actions by three smaller competitors — the Miami International Securities Exchange, MIAX PEARL and BOX. In addition to CBOE, Nasdaq and NYSE are also involved in the process.
According to Seyffart, "there is definitely some movement" regarding options on spot BTC-ETFs.
UPDATE: There's definitely some movement on Bitcoin ETF options.
CBOE just withdrew their application for options on spot #Bitcoin ETFs. Which sounds like a bad thing at first... But at the same time they just re-filed a brand new and updated application https://t.co/L8qYTDXzPb pic.twitter.com/8BQG6JMROn
"At first it sounds like something bad. [...] But at the same time they have just re—submitted a completely new adjusted application," the expert commented.
The analyst stressed that in the updated form, CBOE proposes to change the rules to allow the exchange to list and trade options on BTC-ETFs from Fidelity, Ark Invest/21Shares, Invesco, Franklin Templeton, VanEck, WisdomTree, Grayscale, Bitwise, BlackRock and Valkyrie.
In the application filed in January, the issuers of the underlying instruments were not specified in January.
"The initial application consisted of 15 pages. The new one has more "meat" — 44. Does this mean that the SEC has given some kind of feedback? It seems that they are related to position restrictions and problems of market manipulation," the expert suggested.
What does this mean?
The original filing was only 15 pages. This new one has a lot more meat to it at 44 pages. To me it means that the SEC likely gave some sort of feedback? Which looks like it was related to position limits and market manipulation concerns pic.twitter.com/65TL44c29i
Seyffart was supported by his colleague Eric Balchunas.
"Just as the SEC's comments became a good sign for assessing the chances of registering an ETF, this is true now [regarding options] If they were going to simply refuse, why would they interfere at all?" the analyst pointed out.
Just as “comments from the SEC” was a good sign in our ETF approval odds we think this is good sign here too. Bc if they were just gonna deny outright why bother engaging at all? https://t.co/CPAOl5eU3f
— Eric Balchunas (@EricBalchunas) August 8, 2024Unlike Seyffart, Balchunas found it difficult to name possible deadlines for approving the instrument, but promised to provide regular updates.
Hard to tell the timing. We’re nosing around now and will update as appropriate.
— Eric Balchunas (@EricBalchunas) August 9, 2024Recall that on August 8, NYSE applied to the SEC with a proposal to change the rules allowing it to list and provide the opportunity to trade options based on spot Ethereum ETFs from Bitwise and Grayscale.