Spot Bitcoin ETF Options Approval Expected To Delay For Months

Spot Bitcoin ETF options approval is expected to be delayed for several months, according to industry experts. While the Securities and Exchange Commission (SEC) recently granted approval for Spot Bitcoin ETFs, the introduction of options has been stalled due to the absence of a well-defined regulatory framework. The delay arises from the need for regulatory processes from both the SEC and the Commodity Futures Trading Commission (CFTC), given Bitcoin’s commodity status. This lack of options may discourage significant investors from participating and hinder the potential influx of up to $100 billion into the ETFs. The regulatory landscape is considered a significant barrier to the industry’s desire to expand and introduce more innovative crypto products. It is estimated that the approval process for Spot Bitcoin ETF options could take between two and 10 months, based on past experiences with similar products. Nasdaq, CBOE, and NYSE Arca have sought SEC approval to launch options, but the Options Clearing Corporation (OCC) awaits CFTC approval before they can move forward. Despite the delay, industry experts suggest that a few more months for listed options is not significant in the grand scheme of things, considering the decade-long process for SEC approval of Bitcoin ETFs.