The U.S. Options Clearing Corporation Is 'Preparing' to List Options on Spot Bitcoin Exchange-Traded Funds
- Susan SarandonOriginal
- 2024-11-19 07:17:05702browse
This follows the U.S. Securities and Exchange Commission’s approval of options on BlackRock’s iShares Bitcoin Trust on September 20, 2024
The U.S Options Clearing Corporation (OCC) has announced that it is “preparing” for the listing of options on spot Bitcoin exchange-traded funds (ETFs).
This follows the Commodities Futures Trading Commission’s (CFTC) advisory on the U.S. Securities and Exchange Commission’s (SEC) approval of options on BlackRock's iShares Bitcoin Trust on September 2024.
As reported by crypto.news, the CFTC's Division of Clearing and Risk provided guidance on clearing of options for spot commodity exchange-traded funds on Nov. 15.
OCC's response relates to this CFTC approval of spot Bitcoin ETF options.
“Based on this advisory, OCC is preparing for the clearance, settlement and risk management of such options,” the Chicago-based clearing house wrote.
The news has excited the crypto community, which has remained buoyant since Nov. 5, when the U.S. elected pro-crypto Donald Trump as president. Bitcoin price, which hovered just below $90,000 before the OCC announcement, has rebounded to above $92,650. The benchmark crypto asset traded around $91,400 at the time of writing.
Upbeat sentiment is likely to strengthen amid this development, especially as demand for crypto investment products spikes. Traders looking to ride the opportunity that Bitcoin ETF options offer may not have long to wait, Eric Balchunas, senior ETF analyst at Bloomberg, said via X.
“That’s a wrap,” Balchunas noted. “Now it’s just a matter of when not if.”
According to the ETF expert, the listing process once the OCC has signaled approval is usually straightforward and quick. In most cases, he opined, this happens “within a few days.”
In trading, options are a financial derivatives instrument that offers contracts allowing one to buy or sell financial products like stocks or ETFs at a specified price and time. As the company that clears and settles listed options in the U.S., the OCC handles millions of financial contracts. It's set to add spot Bitcoin ETF options to that list.
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