Bitcoin ETF Options: SEC’s Express Lane Raises Eyebrows in the Crypto Market

• The U.S. Securities and Exchange Commission (SEC) has swiftly acknowledged the request for options trading of spot Bitcoin ETFs, with potential approval speculated by the end of February, according to Bloomberg’s senior ETF strategist, James Seyffart.
• The accelerated timeline, quicker than usual SEC reviews, has raised anticipation among investors, while market dynamics and the performance of Bitcoin ETFs contribute to the evolving narrative.

The U.S. Securities and Exchange Commission (SEC) is making swift moves in the cryptocurrency landscape, with the recent acknowledgment of options trading for spot Bitcoin exchange-traded funds (ETFs). Investors are now eagerly anticipating a potential approval by the end of February, according to insights from Bloomberg’s senior ETF strategist, James Seyffart.

Options for spot Bitcoin ETFs Coming Next Month?

In a surprising turn of events, the SEC has acknowledged the 19b-4s, signaling a faster pace compared to its typical review timelines. Seyffart suggests that the approval for options trading on spot Bitcoin ETFs could materialize by the end of February, provided the SEC opts for an expedited review. While the absolute earliest decision could be around 27 days away, the latest possible verdict might extend until September 21, 2024.

Accelerated Timeline Raises Eyebrows

Seyffart, responding to inquiries regarding the accelerated timeline, highlights that this process is notably quicker than previous 19b-4 submissions. Drawing on his experience, he cites instances where similar requests were approved in as little as 14 days. The recent 19b-4 submissions were filed on January 16, making the current evaluation period only three days old, further adding to the intrigue surrounding this development.

Bloomberg’s ETF strategist, Eric Balchunas, provides an update on the market dynamics, noting that the fifth day of trading has felt more prolonged than its actual duration. Despite a slight downturn following $GBTC’s substantial -$582 million, the total rolling net flows for the week remain at +$1.2 billion. Balchunas also sheds light on the impact of $GBTC’s decline, contributing to a significant bloodbath totaling -$2.2 billion compared to the Nine’s robust +$3.3 billion.

Balchunas points out noteworthy developments in the market landscape, with $FBTC joining $IBIT in the Billy Club. The Newborn Nine, after just five days of existence, now hold approximately 40% of the bitcoin holdings of MicroStrategy, signifying a significant shift in the crypto investment landscape.

As investors eagerly await the SEC’s decision on options trading for spot Bitcoin ETFs, the market remains dynamic. After some selling pressure on Thursday, January 18, the BTC price has rebounded above $42,000 levels as of press time, adding an extra layer of anticipation to the unfolding narrative.