According to reports, the first spot bitcoin exchange-traded fund (ETF) approved for options recently began trading on a major U.S. stock exchange, with options trading on additional bitcoin ETFs expected to follow. The development occurred shortly after the U.S. Commodity Futures Trading Commission (CFTC) issued an Advisory addressing the clearing of options on various spot commodity-based ETF products.
The CFTC Advisory notes that since January 2024, spot commodity ETF shares based on bitcoin have been listed and traded on national securities exchanges, with the U.S. Securities and Exchange Commission (SEC) recently approving spot commodity ETF shares on Ethereum in May 2024. According to the Advisory, CFTC staff believes "[b]ecause ... it is substantially likely that Spot Commodity ETF shares would be held to be securities, we believe that these shares listed on SEC registered national securities exchanges do not implicate the [CFTC's] jurisdiction, and therefore, the clearing of these options ... would be ... subject to SEC oversight." Accordingly, the Advisory takes the position that the CFTC "does not have any more role regarding the clearing of these options."
For more information, please refer to the following links:
- [] Bitcoin ETF's 'unheard of' first-day options trading volume pushes BTC to new all-time high
- Bitcoin Makes New All-Time High of $94,000 as ETF Options Go Live
- CFTC Staff Issues an Advisory Related to Clearing of Options on Spot Commodity Exchange Traded Funds
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