The addition of options features to spot Bitcoin exchange-traded funds (ETFs) in the US is a topic of interest for many investors in the cryptocurrency market. Bloomberg ETF analyst James Seyffart has suggested that these features are likely to be included in the fourth quarter. There is also a possibility that this offering could start as early as the third quarter, with a final decision from the US Securities and Exchange Commission (SEC) expected around Sep. 21. It is important to note that the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) must also approve the inclusion of these options.
Seyffart highlighted that there are already 20 ETFs related to Bitcoin and Ethereum that have options, including leveraged products. However, recent developments have seen three exchanges – BOX Exchange, MIAX Pearl, and Miami International Securities Exchange – withdrawing their applications to list spot Bitcoin ETF options. Despite this setback, major entities such as the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) still have active applications in this space.
On August 7, Nasdaq and BlackRock filed to add to the asset manager’s spot Ethereum ETF, known as iShares Ethereum Trust (ETHA). The SEC has 21 days to provide comments on the matter, and the final deadline for a decision is expected to be around April 9, 2025. Nasdaq’s filing referenced other commodity ETFs with listed options on its platform, such as BlackRock’s iShares COMEX Gold Trust and the iShares Silver Trust.
Despite two consecutive days of outflows, Bitcoin ETFs saw $45 million in inflows on August 7. This was surprising to some analysts, as there was an expectation for outflows to continue until Bitcoin ETFs had reduced their assets under management (AUM) by 2% to 3%. However, only a 0.5% reduction was registered, even with Bitcoin falling 21% on a weekly timeframe. This indicates a level of resilience in the market for Bitcoin ETFs, with investors showing continued interest in these products.
The future of Bitcoin exchange-traded funds in the US remains uncertain but full of potential. The addition of options features could open up new opportunities for investors, while recent developments in the market suggest that there is still strong demand for cryptocurrency-related ETFs. It will be interesting to see how regulators and major exchanges navigate this evolving landscape and what impact it will have on the broader cryptocurrency market.