The Office of the Comptroller of the Currency (OCC) announced that it is ready to start trading Bitcoin ETF options two days after CFTC approval. This trade is expected to start within two days.
The SEC initially approved it in September, but this development has now resolved all regulatory hurdles.
It took 2 months to get CFTC approval after SEC option approval
According to ETF analyst Eric Balchunas, while the OCC did not confirm the exact launch date of the Bitcoin ETF options, it is now a matter of 'when' rather than 'if'. Following this statement, Allison Haenisch, Nasdaq's ETP listing manager, said this development could happen as soon as this week.
"Nasdaq is ready, and the IBIT options could be listed as soon as tomorrow," Haenisch was quoted as saying by Bloomberg ETF analyst Eric Balchunas.
The OCC and CFTC play a crucial role in the approval process for ETF option trading. The first step in this process was taken in September when the SEC gave its approval. However, while the SEC can independently approve the original Bitcoin ETF, additional consensus is required for option trading.
Nevertheless, considering Chair Gary Gensler's strategy of repeatedly delaying decisions, the SEC was seen as the most challenging hurdle. After the SEC approved this option listing, it is unclear why it took nearly two months for the CFTC to give its own approval. However, the OCC was then quickly ready to implement it.
Balchunas argued that this is a typical pattern for these institutions. "The listing process after OCC approval tends to move relatively quickly, often within days." However, this does not guarantee that the related markets will keep up with this pace.
As previously reported by BeInCrypto, on-chain analysis has called the recent ETF option trading a "key milestone in Bitcoin adoption." The initial wave of Bitcoin ETFs has suggested institutional acceptance and attracted new investors.
However, option trading will accelerate this existing trend. New investment vehicles and institutional revenue streams will increase market liquidity, making it easier for institutional entities to access the Bitcoin market.
