Bitcoin ETF options clear 'second hurdle' with CFTC approval.

This development follows a significant move from the U.S. Commodity Futures Trading Commission (CFTC), which announced on November 16 that it would no longer be involved in the clearing process for these options. 

The CFTC’s decision indicates that the OCC will take over the role of clearing and settling these options, as it is the sole issuer of all equity options in the U.S. This step marks a crucial milestone in the approval process for spot Bitcoin ETF options.

The momentum for Bitcoin ETFs has been growing since October when the U.S. Securities and Exchange Commission (SEC) gave the green light to applications from major exchanges, including the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (CBOE), to list spot Bitcoin ETF options. 

This approval is a key step in making Bitcoin ETF options a reality, and analysts are optimistic that it will have a substantial impact on Bitcoin’s price, potentially pushing it even higher as institutional interest grows.

Crypto executives are excited about the potential for Bitcoin ETF options to increase market liquidity and attract further institutional investments. 

For instance, Nick Forster, founder of Derive, pointed out that SoftBank’s use of options in the stock market had a massive impact on the Nasdaq in previous years. Forster suggests that using options with Bitcoin, a fixed-supply asset, could have even more dramatic consequences, potentially driving Bitcoin's price upwards.

In terms of timing, while analysts like Jeff Park of Bitwise Invest believe that the OCC is likely to act swiftly, he also notes that while approval by the end of 2024 is a strong possibility, it is not yet a certainty. Other commentators, such as British Hodl, predict that Bitcoin ETF options might be available by Q1 of 2025, signaling a gradual but inevitable rollout.

Overall, while the path for Bitcoin ETF options appears clear, there remains a sense of cautious optimism, with the understanding that their launch could significantly reshape the crypto landscape. 

As this process unfolds, the potential for Bitcoin to become even more entrenched in traditional finance continues to grow, with many speculating that Bitcoin’s price could be significantly impacted by the introduction of these options.