Expect Bitcoin ETF options to launch before 2025
You can expect Bitcoin ETF options to begin trading in the United States before 2025.
After gathering dust for months, applications to list options on spot Bitcoin (BTC) exchange-traded funds (ETFs) are finally getting attention from regulators. Expect BTC ETF options to start trading on United States exchanges this year. Options on Ethereum (ETH) ETFs will soon follow.
Options are contracts that grant the right to buy or sell — “call” or “put” in trader parlance — an underlying asset at a certain price. They are attractive hedging instruments (don’t you wish you locked in the right to sell BTC at $73,000?) and are popular with speculators, too.
Adding options trading may seem anticlimactic in the wake of BTC ETFs’ long-awaited launch in January. That couldn’t be further from the truth. Options are critical for institutional adoption — especially with highly volatile crypto ETFs. Plus, if existing crypto options are any indication, spot BTC ETF options will be a huge market.
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Author: Alex O’Donnell