As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous transformative moments that reshaped the industry landscape. Today’s development regarding the CFTC’s decision to transfer Bitcoin ETF options clearing responsibility to the Options Clearing Corporation is undeniably one such moment.
According to the U.S. Commodity Futures Trading Commission’s Division of Clearing and Risk, they will no longer be involved in facilitating trading for Bitcoin ETF options moving forward.
As per a prearranged declaration, I’m delegating this task to the Options Clearing Corporation for management and oversight.
Given previous court rulings regarding similar financial instruments, it’s highly probable that these spot commodity ETF shares will be classified as securities. Consequently, DCR argues that listing these shares on stock exchanges regulated by the Securities and Exchange Commission (SEC) does not fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
CFTC staff advisory.
As stated by the commission, it’s the Office of the Comptroller of the Currency (OCC) that has the ultimate power to determine if equity options will be permitted for listing within the United States, as they are the sole entity responsible for issuing such options.
It’s anticipated that the OCC’s approval may arrive quite quickly, as ETF expert Eric Balchunas hints at an impending decision.
Andrew, a market commentator, mentioned that the CFTC’s action happened sooner than many had predicted. Originally, it was thought that approval wouldn’t come until late Q1 of 2025, but this decision might expedite the process.
Jeff Park from Bitwise Investment expressed optimism regarding the possibility of an end-of-year approval, but cautioned against taking unnecessary risks, stating he wouldn’t bet against the odds.
The advisory follows the SEC’s approval last month, which cleared applications from the New York Stock Exchange and the Chicago Board Options Exchange to list and trade Bitcoin ETF options.
Investing in options grants individuals the privilege, not the compulsion, to either purchase or sell a particular asset at a predetermined cost before a fixed deadline. The Securities and Exchange Commission (SEC) posits that incorporating options trading might lead to “enhanced price precision” and “reduced volatility” within Bitcoin Exchanged Traded Funds (ETFs). This, in turn, could contribute to market stability while improving transparency and efficiency overall.
Supporters of Bitcoin consider the acceptance of Bitcoin ETFs as a significant shift, potentially increasing market fluidity.
The Commodity Futures Trading Commission (CFTC) has released an advisory, allowing for the settlement of options on Spot Commodity Exchange-Traded Funds (ETFs). This development could potentially pave the way for Bitcoin options to be approved, significantly increasing liquidity in the market.
— MartyParty (@martypartymusic) November 16, 2024
Previously this year, Michael Sonnenshein, the chief executive officer of Grayscale, expressed support for quick approval of Bitcoin Exchange-Traded Fund (ETF) options. He explained that these funds would attract additional investors, such as broker-dealers, and strengthen Bitcoin’s connections with conventional finance.
In his latest online update, crypto expert Mario Nawfal underscored the excitement surrounding potential Bitcoin Exchange-Traded Fund (ETF) choices, noting that major investors are showing keen interest, almost salivating at the prospective chances.
The Commodity Futures Trading Commission (CFTC) has given the go-ahead for Bitcoin spot ETF options, causing excitement among institutional investors. BlackRock’s Bitcoin ETF will be known as “IBIT,” and there’s growing anticipation about more major players entering the market. Following a dip to $87,100, Bitcoin surged back up to $91,000.
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 16, 2024
“This is your mainstream finance world, now featuring Bitcoin,” he wrote.
In simpler terms, the price of Bitcoin increased following the news, surpassing the previous resistance point of $91,000 that it had found challenging for the past two days. Currently, Bitcoin is being traded at approximately $91,293, representing a rise of 2.4% compared to its previous value.
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2024-11-17 07:09