What Are the Chances of the Next Major Breakthrough in Bitcoin Occurring Before 2025? Experts Weigh In
As the financial industry continues to adjust to the recent introduction of spot Ethereum ETFs, investors are eager to know when the next significant milestone in cryptocurrency products, particularly spot Bitcoin ETF options, will occur.
Leading analysts have predicted that these options could become available earlier than anticipated, estimating a 70% chance of them being offered to the market before 2025.
With Bitcoin ETF options, investors would have the ability to buy or sell Bitcoin at a predetermined price on a specific date, providing a simplified process similar to call options for stocks. This would eliminate the complexity of navigating crypto-specific platforms like Bybit and widen access to the rapidly growing cryptocurrency market.
Experts from Bloomberg Intelligence, Eric Balchunas and James Seyffart, believe that Bitcoin ETF options are likely to be launched by the end of this year. Seyffart explained during a recent webinar that the existence of options for Bitcoin and various Ethereum-related ETFs suggests that the Securities and Exchange Commission (SEC) is unlikely to impede the debut of Bitcoin ETF options.
“There are a bunch of ETFs that hold derivatives of Bitcoin. Covered call Bitcoin, leveraged Bitcoin, leveraged Ethereum, actively managed ETFs, they all have options already,” Seyffart noted.
He further expressed that there is substantial demand for such products, giving the SEC no apparent reason to deny their approval.
However, the SEC is not the final obstacle in the approval process. Once the SEC grants approval, the application proceeds to the Options Clearing Corporation (OCC) and subsequently to the Commodity Futures Trading Commission (CFTC). Unlike the SEC, neither the OCC nor the CFTC have specified deadlines for completing the approval process.
Seyffart also highlighted that certain gold ETFs, which have been in operation since the 1990s, still do not have options, while some platinum ETFs have been awaiting approval since 2010. Despite these examples, analysts remain optimistic about the future of Bitcoin ETF options.
Recently, the Chicago Board Options Exchange (CBOE) withdrew and promptly resubmitted its application for Bitcoin ETF options. The revised application, now 44 pages long compared to the original 15 pages, indicates a positive response from the SEC, according to analysts.
“We think this is a good sign, just as ‘comments from the SEC’ are a good sign for our ETF approval prospects,” Balchunas shared on social media platform X. “Because if they’re going to just reject it outright, why bother looking at it at all?”
*This is not investment advice.