Bitcoin ETF options likely to go live in Q4 – Bloomberg analyst

On Aug 8, 2024

Options features are likely to be added to spot Bitcoin (BTC) exchange-traded funds (ETF) in the US in the fourth quarter, according to Bloomberg ETF analyst James Seyffart.

However, in another post, Seyffart highlighted that the offering could start as soon as the third quarter, as the final deadline for a decision from the US Securities and Exchange Commission (SEC) is approximately Sep. 21.

He added:

“Technically in our note I said second half of 2024 because the SEC deadline is in 3rd quarter (sept 21) and there’s nothing stopping things from moving even faster than that other than: ‘It normally takes longer than that.’

Seyffart also pointed out that the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) must also approve the inclusion.

As a reference, the Bloomberg analyst listed 20 ETFs related to Bitcoin and Ethereum (ETH) that already have options, including leveraged products.

Coincidentally, less than an hour after Seyffart posted this prediction, three exchanges — BOX Exchange, MIAX Pearl, and Miami International Securities Exchange — have withdrawn their applications to list spot Bitcoin ETF options.

However, senior Bloomberg ETF analyst Eric Balchunas noted that those are three “tiny exchanges,” while major entities, such as the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) still have active applications.

Options for Ethereum ETFs

On Aug. 7, Nasdaq and BlackRock filed to add

to the asset manager’s spot Ethereum ETF iShares Ethereum Trust (ETHA). The SEC has 21 days to provide comments on the matter, although the final deadline is “likely to be around” April 9, 2025, according to Seyffart.

In the filing, Nasdaq mentioned other commodity ETFs with listed options in its platform, such as BlackRock’s iShares COMEX Gold Trust and the iShares Silver Trust.

Bitcoin ETF flows

After two consecutive days of outflows, Bitcoin ETFs registered $45 million in inflows on Aug. 7. Despite Grayscale’s GBTC outflows amounting to $30.7 million, BlackRock’s IBIT received $52.5 million in cash.

Balchunas said he was surprised by the inflows as he expected outflows to continue until Bitcoin ETFs had reduced their AUM by roughly 2% to 3%. Yet, only 0.5% was registered, despite BTC falling 21% on the weekly timeframe.