The CFTC Just Dropped a Notice Clearing the Way for Spot Bitcoin ETF Options to Be Listed

This is the second hurdle they needed to clear after the SEC. Ball now in OCC's court and they are into it, so they'll prob list very soon.

The Commodity Futures Trading Commission (CFTC) has announced its approval for Bitcoin spot ETF options on Friday, paving the way for the listing of these options on major U.S. exchanges.

This approval comes after the U.S. Securities and Exchange Commission (SEC) gave the green light for the listing and trading of options for asset manager BlackRock's spot Bitcoin exchange-traded fund (ETF) on the Nasdaq in September.

With the CFTC's approval, the Options Clearing Corporation (OCC), the exclusive issuer of equity options, will now be solely responsible for clearing these options, as per a statement from the CFTC.

"CFTC Division of Clearing and Risk will no longer clear these options, which will instead be cleared by OCC, pursuant to SEC approval of relevant OCC rules," the statement reads.

Bitcoin ETF options approval: ‘More big fish’

"More big fish"

BOOM: The CFTC just dropped a notice clearing the way for spot bitcoin ETF options to be listed. This is the second hurdle they needed to clear after the SEC. Ball now in OCC's court and they are into it, so they'll prob list very soon. pic.twitter.com/tRiwaPpoW4

According to Bloomberg analyst Eric Balchunas, this approval clears a major hurdle, but the actual listing of Bitcoin ETF options now depends on the likely approval from the OCC.

"This is the second hurdle that needed to be cleared after the SEC, which is known for moving slowly when it comes to approving new products, especially those related to bitcoin," Balchunas noted in a tweet.

"The ball is now in the OCC's court and they are into it, so they will probably list these options very soon. Get ready for some excitement!" he added.

Related: MicroStrategy CEO Saylor bullish on Bitcoin as SEC approves BTC ETF optionsڡ

In his reaction to the SEC's approval in September, Balchunas wrote: "I'm assuming others will be approved in short order. Huge win for the the bitcoin ETFs (as it will attract more liquidity which will in turn attract more big fish)."

MicroStrategy CEO Michael Saylor also shared his bullish forecast on Bitcoin amid SEC’s approval of BTC ETFs options in a recent post on X, writing that this approval will lead to a broader institutional adoption of Bitcoin.

"This will lead to broader institutional adoption of bitcoin, as options are a critical tool for risk management, speculation & capital efficiency, which will drive demand for more bitcoin products," Saylor wrote.

iShares Bitcoin Trust to trade under ‘IBIT’ ticker

The iShares Bitcoin Trust, BlackRock's ETF, will begin trading under the ticker symbol "IBIT." This marks a significant milestone, as it opens up new avenues for investors to trade Bitcoin-based options through a regulated financial product.

"The Options will be listed on Nasdaq and trade under the ticker symbols “IBITP” (for Put Options) and “IBITC” (for Call Options), together with the applicable month code (e.g., IBITPC2 for March 2025 Put Options and IBITCC2 for March 2025 Call Options)," the Nasdaq заметили.

Bitcoin options approval to boost institutional demand, market liquidityThe approval of options trading for BlackRock's iShares Bitcoin Trust marks a significant step for the crypto market, boosting Bitcoin’s legitimacy among institutional investors.

It offers sophisticated tools for risk management and speculation, likely attracting more capital and increasing market liquidity.

The SEC's involvement also enhances investor confidence, potentially driving demand for Bitcoin products. This development signals further integration of Bitcoin into the mainstream financial system, with the potential to stabilize prices and increase market activity.

Upon hearing the news, BTC bulls strapped in for the return of the rally as Bitcoin price soared above $91,000.

Bitcoin faced a temporary dip during Friday's trading session, falling to a low of $87,100, following remarks from Federal Reserve Chair Jerome Powell, who emphasized there was "no need to rush interest rate decreases."

However, Bitcoin quickly rebounded, recovering some of its losses and climbing back above $91,000.