The Options Clearing Corporation (OCC) announced its readiness to manage the clearance and settlement of options on spot Bitcoin exchange-traded funds (ETFs). This follows a staff advisory issued by the Commodity Futures Trading Commission (CFTC) confirming that such products fall under the U.S. Securities and Exchange Commission (SEC) jurisdiction.
The OCC stated on Nov. 18 that it is preparing for the “clearance, settlement, and risk management” of options tied to spot Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT). Alison Hennessy, head of exchange-traded products at Nasdaq, said IBIT options could be available for trading as early as Nov. 19.
The CFTC advisory clarified that the OCC, as the sole issuer of equity options, would handle these products as part of its role as a registered clearing agency overseen by the SEC. The advisory also indicated that listing these options on SEC-registered exchanges does not fall within the CFTC’s regulatory scope.
The SEC previously approved 11 spot Bitcoin ETFs in January, followed by spot Ether ETFs in May. Since their introduction, spot Bitcoin ETFs have generated significant trading volumes, exceeding $500 billion. BlackRock’s IBIT commands a dominant market share, accounting for nearly two-thirds of the activity.
According to Nasdaq, listing dates for IBIT options were updated to indicate Nov. 19 as a potential launch date. ETF analyst Eric Balchunas remarked that the final stages of the listing process are underway, describing it as “a matter of when, not if.”
Options trading is expected to appeal to both retail and institutional investors. Retail participants often use options for speculative purposes, while institutions employ them to hedge existing positions. Analysts note that Bitcoin’s strong retail following may lead to heightened activity in ETF options compared to traditional equity options.
The OCC’s preparations and the recent CFTC notice signal that these investment products are nearing their debut, potentially marking a significant development in the U.S. cryptocurrency market.
