Regulatory bodies are finally addressing applications to list options on spot Bitcoin (BTC) exchange-traded funds (ETFs), with a 70% chance that these options will start trading on US exchanges by the end of this year. Options contracts allow traders to buy or sell contracts granting the right, but not the obligation, to buy or sell an asset at a predetermined price within a specified time frame.
Despite the introduction of BTC ETFs earlier this year, options trading remains crucial for institutional investors, especially given the volatility of crypto ETFs. The three US exchanges offering spot BTC ETFs— NYSE Arca, Cboe, and Nasdaq—requested permission from the Securities and Exchange Commission (SEC) to list options on these funds in January, facing delays as the SEC sought additional information.
Progress was made on August 8 when Cboe submitted an updated application. The launch of Bitcoin ETF options is expected to make these ETFs even more appealing to institutional investors, representing an essential step toward the mass adoption of cryptocurrencies.
In other news, Brazil’s Securities and Exchange Commission (CVM) approved the world’s first spot Solana ETF last week, further expanding the options available for investors in the cryptocurrency market.
