Growing Optimism Around Approval
Balchunas and Seyffart last year revising their probability estimate that a bitcoin ETF option would be available somewhere before 2025 to 70%. When attending the Thursday webinar, Seyffart stated that because there are opportunities for other crypto ETFs, it is improbable that the SEC will meddle with the launching of Bitcoin ETF options. The analysts remain as confident as before despite problems with approval that is sometime lengthy with SEC, OCC and CFTC.
Significant Market Demand
Seyffart said that there is already a rising interest in other types of crypto derivative products like leveraged and covered call BTC ETFs. Thus, opportunities to invest in Bitcoin ETF options will increase, and people will not need complex crypto-brokers to do that. The demand is already there and consequently there is no logical sense in these products which are awaited to be denied the green light.
CBOE Resubmission Signals Progress
In this case when CBOE backed out and came up with a stronger and more general application for Bitcoin ETF options which opposes viewed as a plus. This is in relation to Balchunas’ observation where he said that if the SEC had any intentions of outright rejecting the application, it would not have troubled the company requesting for more information. It has been analyzed that it is constructive that now CBOE IS receiving feedback and questioning from the SEC.
Remaining Approval Hurdles
However, as is always the case with such outlooks, some analysts are rather quick to point to the remaining difficulties on the way to achieving this scenario, which makes it eminently possible for the approval to be reached by 2025. Any authorization granted by the SEC in the first stage means the passage to the second stage where the OCC and CFTC would conduct an even more strict examination. The SEC, however, does not have the same kind of imperative deadline that neither of these agencies do, as to the closing off of applications. There are even some gold and platinum ETFs setting up for more than several years and they still do not have options approval even now.
Crypto Innovation Moving Swiftly
But, what is observed on describing the dynamics of government approval is such: it goes on progressing extremely slowly, whereas innovations in the context of the crypto industry continue evolving at a rapidly growing rate. In the recent past, spot Ethereum ETFs and FTX’s stock trading have come to exist and have demonstrated that the rate of their development has remained apace. Thus, although options approval may be stopped for now, the same analysts are optimistic that options cannot be closed down as there is demand. Should the advancement continue in such a manner, one can only expect that having Bitcoin ETF choices to be more accessible long before 2025 is quite feasible.
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