Options on Bitcoin (BTC) ETFs are set to launch in the US in early 2025, as predicted by Bloomberg Intelligence analyst James Seyffart.
During the Permissionless conference on October 9, Seyffart indicated that while a launch before the end of the year is feasible, the first quarter of 2025 is a more realistic timeline for the introduction of these advanced financial tools.
The SEC’s approval for Nasdaq to list options linked to BlackRock’s iShares Bitcoin Trust, IBIT, has paved the way for options on Bitcoin ETFs. However, final approvals from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) are still pending.
Options contracts provide investors with the right to buy or sell an underlying asset at a specified price. Bitcoin ETF options are among the initial regulated cryptocurrency options publicly traded in the US.
The introduction of these instruments is significant for controlling counterparty risk in the markets, as highlighted by the OCC’s objective.
The availability of options on ETFs could have a substantial impact on mainstream market adoption, according to Seyffart. Options trading can help advisors manage risks associated with volatility and price fluctuations, making the space more appealing to institutional investors.
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