The addition of options features to Bitcoin exchange-traded funds (ETFs) in the US is a hot topic of discussion. Bloomberg ETF analyst James Seyffart predicts that these features could be introduced as early as the third quarter, with a final deadline for a decision from the US Securities and Exchange Commission (SEC) set for September 21. While Seyffart acknowledged that the proposal could potentially be pushed to the fourth quarter, he remains optimistic about the timeline.
According to Seyffart, the inclusion of options features in Bitcoin ETFs requires approval from not only the SEC but also the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC). He referenced the existence of 20 ETFs related to Bitcoin and Ethereum that already offer options, highlighting the need for comprehensive regulatory oversight in this space.
Despite the buzz surrounding the potential introduction of options features, there have been recent withdrawals from exchanges such as BOX Exchange, MIAX Pearl, and Miami International Securities Exchange. However, senior Bloomberg ETF analyst Eric Balchunas downplayed the significance of these withdrawals, noting that larger entities like the New York Stock Exchange (NYSE), Nasdaq, and Chicago Board Options Exchange (CBOE) are still actively pursuing Bitcoin ETF options.
In addition to Bitcoin ETFs, there has been a recent filing by Nasdaq and BlackRock to add spot Ethereum ETF iShares Ethereum Trust (ETHA). This move signals a growing interest in cryptocurrency ETFs beyond just Bitcoin. Market trends have shown fluctuations in ETF inflows and outflows, with Bitcoin ETFs experiencing $45 million in inflows despite recent volatility in the cryptocurrency market.
Eric Balchunas expressed surprise at the positive inflows into Bitcoin ETFs, as he had anticipated continued outflows until assets under management (AUM) had decreased by 2% to 3%. However, the actual decrease was only 0.5%, indicating a level of resilience in the market. Looking ahead, industry experts are cautiously optimistic about the future of Bitcoin ETFs in the US, while keeping a close eye on regulatory developments and market trends.
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