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Bitcoin Developers Have Been Chasing This For Months: Options May Open This Week - Coin Bulletin
Options Clearing Corporation (OCC), the world's largest equity derivatives clearing organization, has announced that it is preparing for the clearing and risk management of options based on spot Bitcoin exchange-traded funds (ETFs).
Eric Balchunas, Bloomberg's senior ETF analyst, said that the listing process usually progresses quickly after OCC approval, stating, 'Now the issue is not 'if', but 'when'.
Alison Hennessy, Nasdaq's ETP Listing Officer, stated in an interview with Bloomberg that Nasdaq is ready for listing and that iShares Bitcoin Trust (IBIT) options could be launched as early as Tuesday, November 19th. The OCC's website also states that IBIT options could be listed on November 19th.
SEC and CFTC Compliance
The risk department of the CFTC (Commodity Futures Trading Commission) stated in a note released last Friday that options based on spot commodity ETFs will be cleared and settled by OCC, and this process will be supervised by the SEC (Securities and Exchange Commission). CFTC indicated that it is “highly likely” that these ETF shares will be considered as “securities”, and therefore, it announced that these products fall under the jurisdiction of the SEC.
OCC announced that it has made the necessary preparations to initiate the listing, clearing, and risk management processes for spot Bitcoin ETF options following this statement.
The first step for Spot Bitcoin ETF options
The request for listing options for Spot Bitcoin ETFs came up after SEC approved 11 Spot Bitcoin ETFs in January. On September 20, SEC approved BlackRock's application to list and trade options for iShares Bitcoin Trust (IBIT). This is considered as the first step of the process and it is expected that other firms will also prepare to offer similar products.