The Office of the Comptroller of the Currency (OCC) announced it is preparing to launch options trading on the Bitcoin ETF, two days after receiving approval from the CFTC. These transactions are expected to officially go live in the next day or two.
The Securities and Exchange Commission (SEC) first gave its approval in September, but these developments cleared all remaining regulatory hurdles.
Trade Bitcoin Spot ETF options
According to ETF analyst Eric Balchunas, the OCC has not confirmed an official launch date for the Bitcoin ETF options, but it is now just a matter of time. Following this statement, NASDAQ Head of ETP Listing, Alison Hennessy, said this development will happen soon, possibly this week.
“NASDAQ is ready, IBIT options will be listed as early as tomorrow,” Hennessy said, according to a quote from Bloomberg ETF analyst Eric Balchunas.
OCC and CFTC are two very important pieces in the process of approving ETF options trading. The first step in this process took place in September when the SEC gave the green light. However, while the SEC can autonomously decide on the initial approval of a Bitcoin ETF, options trading requires additional consensus.
However, the SEC is considered the most difficult step, due to Chairman Gary Gensler’s strategy of continuously delaying making a firm decision. When the SEC approved these options portfolios, it was unclear why the CFTC delayed nearly two months before granting its authorization. After that, OCC is ready to implement immediately.
Balchunas confirm this is a normal progression pattern for these agencies, as “the listing process following OCC approval is considered quick, typically occurring within a few days.” However, this does not guarantee that the relevant market will meet this speed.
As TinTucBitcoin previously reported, Blockchain Analytics recently called ETF options trading a “milestone” for Bitcoin adoption. The initial wave of Bitcoin ETFs signaled institutional adoption and attracted new investors.
However, options trading will strongly promote this trend. New investment types and institutional revenue streams will increase market liquidity, making the Bitcoin market more accessible to institutional entities.