Cboe Exchange, a prominent U.S. securities exchange, has recently submitted an amended application to regulatory authorities, aiming to list options for exchange-traded funds (ETFs) based on Bitcoin (BTC) and Ether (ETH). This development was disclosed in two separate filings on August 28, which pertain to the listing of Bitcoin and Ether options. The exchange’s proposal seeks to introduce options connected to ETFs for these cryptocurrencies, with the ETFs being issued by a range of well-known asset managers. Among these are Fidelity, 21Shares, Invesco, VanEck, Grayscale, Bitwise, BlackRock’s iShares, and Valkyrie.
The proposed rule change would classify spot cryptocurrency ETFs in the same category as commodities-based ETFs, such as the Goldman Sachs Physical Gold ETF and the iShares Silver Trust. This classification would recognize these ETFs as “[s]ecurities deemed appropriate for options trading,” according to the exhibits attached to the filings for Bitcoin and Ether options.
This move by Cboe is the latest in a series of significant actions related to options on spot cryptocurrencies within the United States. Just a day earlier, on August 27, Nasdaq, another major U.S. securities exchange, announced its plans to list Bitcoin options that are tied to the CME CF Bitcoin Real-Time Index (BRTI), a benchmark used to determine the spot price of Bitcoin. This follows a period of activity in August, during which both the New York Stock Exchange (NYSE) American and Nasdaq International Securities Exchange (ISE) withdrew four applications they had submitted to the Securities and Exchange Commission (SEC) concerning the potential listing of Bitcoin options. Additionally, on August 8, Cboe had withdrawn an earlier application related to the listing of Bitcoin ETF options.
The momentum around Bitcoin ETF options has not gone unnoticed by industry experts. Bloomberg Intelligence analyst James Seyffart commented on the situation in an August 8 post on X, noting that “there’s definitely some movement on Bitcoin ETF options.” Seyffart suggested that the SEC had likely provided some form of feedback, prompting these developments. Bloomberg’s analysis further predicts that spot Bitcoin options could go live by the fourth quarter of the year.
In the context of trading
Options are contracts that provide the holder with the right to either buy or sell an underlying asset at a predetermined price. These contracts are known as “call” options if they grant the right to buy, and “put” options if they grant the right to sell. Options are frequently used as hedging instruments, allowing traders to manage risk, but they are also popular among speculators seeking to profit from price movements.
Cryptocurrency derivatives, including options, are gaining significant traction on regulated exchanges in the U.S. As of the close of the market on August 9, the open interest in options tied to Bitcoin futures ETFs had surpassed $3.25 billion, according to data from The Options Clearing Corporation, a self-regulatory organization within the industry.
Exchanges are also showing interest in listing options for other cryptocurrencies, such as Solana (SOL). Asset manager VanEck, for instance, has plans to launch a Solana ETF, and despite the recent withdrawal of Cboe Global Markets’ regulatory filing that had proposed listing this fund on its exchange, the project remains active. This was confirmed by Matthew Sigel, VanEck’s head of digital assets research, in a post on X, where he stated that the plans for a Solana ETF are “still in play.
