There is a lot of buzz surrounding the potential addition of options features to spot Bitcoin exchange-traded funds (ETFs) in the US. Bloomberg ETF analyst James Seyffart suggests that these features may be included as early as the fourth quarter of this year. However, in a different post, Seyffart mentions that the offering could potentially kick off as soon as the third quarter, with the final decision deadline from the US Securities and Exchange Commission (SEC) set for around September 21st. He also touches upon the fact that the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) will need to give their approval for this inclusion to take place.
In a surprising turn of events, just shortly after Seyffart’s prediction, three exchanges – BOX Exchange, MIAX Pearl, and Miami International Securities Exchange – decided to withdraw their applications to list spot Bitcoin ETF options. Despite this setback, senior Bloomberg ETF analyst Eric Balchunas notes that these are relatively minor exchanges in comparison to major players like the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) who are still actively pursuing the inclusion of these options features.
On August 7th, there was a noticeable shift in the market as Bitcoin ETFs saw a significant $45 million in inflows. This came after two consecutive days of outflows. Interestingly, despite Grayscale’s GBTC experiencing outflows of $30.7 million, BlackRock’s IBIT managed to attract $52.5 million in cash. Balchunas expressed surprise at this influx of funds, expecting outflows to continue until Bitcoin ETFs had reduced their Assets Under Management (AUM) by 2% to 3%. However, only a 0.5% reduction was recorded, even with Bitcoin falling by 21% on a weekly basis.
As the industry awaits further developments and regulatory approvals, it remains to be seen how the inclusion of options features in Bitcoin ETFs will impact the market. With major players still in the game and active applications in progress, the potential for growth and innovation in this space is undeniable. It will be crucial to monitor the SEC’s comments and final decisions in the coming months to gauge the trajectory of Bitcoin ETFs in the US market.