Following the launch of the spot Bitcoin ETF in January, Bitcoin ETF choices are anticipated to be launched by the top of the yr. On the time of the launch of the spot Bitcoin ETF, the three exchanges itemizing it requested the SEC whether or not they may additionally listing choices on these funds, however the SEC didn’t reply on the time.

A couple of months later, the SEC was prompted to think about approving Bitcoin ETF choices, after which Cboe filed an amended software with the SEC outlining how it will deal with points resembling market manipulation and place limits.

The SEC has due to this fact requested time to research and is anticipated to decide on September 21. Some consultants are optimistic that Bitcoin ETF choices shall be accepted by the top of the yr as a consequence of stress from the US presidential election.

Senior analyst Eric Balchunas commented on X that the SEC’s response to CBOE’s amended submitting is encouraging in comparison with the approval of a Bitcoin ETF.

However what precisely are Bitcoin ETF choices, and the way will their approval have an effect on the market? Bitcoin ETF choices symbolize the best to purchase or promote a Bitcoin ETF at an agreed-upon value over a particular time period.

Bitcoin ETF choices give buyers much more flexibility with their Bitcoin ETFs, as they offer buyers the best to promote the BTC ETF however no obligation to purchase or promote it.

Undoubtedly, the approval of Bitcoin ETF choices will carry extra liquidity to Bitcoin and the cryptocurrency market as an entire, in the identical method that the Bitcoin ETF has added extra liquidity and buyers to the cryptocurrency market.

Whereas the approval of a Bitcoin ETF would improve publicity to Bitcoin, it will additionally result in elevated regulation of Bitcoin and make its value extra correlated with conventional markets.