The Chicago Board Options Exchange (Cboe) has submitted a revised application to U.S. regulators, seeking approval to list options on Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
The application outlines plans to list options tied to ETFs managed by prominent asset managers, including Fidelity, 21Shares, Invesco, VanEck, Grayscale, Bitwise, BlackRock’s iShares, and Valkyrie. The proposed rule change would classify these spot cryptocurrency ETFs similarly to commodities-based ETFs, such as the Goldman Sachs Physical Gold ETF and the iShares Silver Trust, as “securities deemed appropriate for options trading.”
Cboe’s latest filing follows Nasdaq’s announcement on August 27 of its plans to list Bitcoin options linked to the CME CF Bitcoin Real-Time Index (BRTI), a key benchmark for BTC’s spot price. This move highlights the growing interest in regulated cryptocurrency derivatives markets.
Earlier in August, Cboe withdrew a previous application to list Bitcoin ETF options, mirroring actions taken by the New York Stock Exchange (NYSE) American and Nasdaq International Securities Exchange (ISE), both of which had also retracted applications related to Bitcoin options.
As per an August 14 filing with the US Securities and Exchange Commission, the NYSE retracted its application that would see a rule change to allow it to list and trade options on the Bitwise Bitcoin ETF (BITB) and the Grayscale Bitcoin Trust (GBTC). Despite these earlier withdrawals, Cboe’s new application indicates a renewed effort to bring these options to market.
Analysts suggest that the U.S. SEC may have provided feedback that influenced these new filings. Bloomberg Intelligence analyst James Seyffart commented, “There’s definitely some movement on Bitcoin ETF options,” suggesting that industry insiders are optimistic about the potential for these products. Bloomberg has projected that spot Bitcoin options could become available by the fourth quarter of this year, signaling a potential breakthrough in the U.S. crypto derivatives market.
Options contracts give investors the right to buy or sell an asset at a predetermined price, making them valuable tools for hedging and speculative strategies. Interest in cryptocurrency derivatives continues to rise. Data from The Options Clearing Corporation shows that, as of August 9, open interest in Bitcoin futures ETF options had surpassed $3.25 billion.
Beyond Bitcoin and Ether, the potential listing of Solana (SOL) ETFs remains on the table. VanEck, a key player in the ETF space, has stated that they are considering the Solana ETF. The SEC’s stance on Solana, which it has categorized as a security in some legal proceedings, has prompted issuers to reconsider their approach.
At the start of the year, the U.S. Securities and Exchange Commission (SEC) gave the green light to a range of spot Bitcoin ETFs, marking a significant shift after years of anticipation and numerous rejected applications. Initially, only Bitcoin futures ETFs, which track the price of Bitcoin futures contracts rather than Bitcoin itself, were available in the U.S.
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