Options Trading for Bitcoin ETFs
The New York Stock Exchange (NYSE) has filed for approval to allow options trading on Commodity-Based Trust Shares, aligning with the structure of newly introduced Bitcoin ETFs. If approved, this move could increase trading volume and liquidity for the ETFs. The filing process involves all three exchanges and could be approved within two months. Bloomberg’s Eric Balchunas highlights the significance of options trading, comparing it to commodity trusts like $GLD. He anticipates that options could play a significant role in these ETFs due to their inherent volatility.
Potential Delays in Approval Process
Bloomberg strategist James Seyffart speculates on potential delays in the approval process for options trading on spot BTC ETFs. While the SEC could expedite the process with a first deadline in less than 60 days, Seyffart considers the SEC’s historical approach and suggests that approval could be delayed until late September or early October 2024. This news comes at a time when there is increasing interest in the intersection of traditional financial markets and cryptocurrencies.
ProShares Files for Leveraged Bitcoin ETFs
In addition to options trading, ProShares has submitted filings for leveraged Bitcoin ETFs, offering investors the opportunity to take positions based on Bitcoin’s price movements.
Grayscale’s Impact on BTC ETF Trading Volumes
Grayscale has been driving trading volumes for Bitcoin ETFs. Recently, there have been net outflows from Bitcoin ETFs, particularly from $GBTC, with an estimated $594 million exiting the fund. While some other Bitcoin ETFs saw inflows, it remains uncertain whether these inflows will be enough to offset the significant outflow from $GBTC. The flow of funds within the Bitcoin ETF market continues to be closely watched.
Hot Take: Franklin Templeton Breaks Records With Lowest Bitcoin ETF Fee
Last week, Franklin Templeton made headlines by launching a Bitcoin ETF with the lowest fee in the market. The ETF, named “FT Bitcoin Strategy ETF,” charges an expense ratio of just 0.10%, significantly lower than other Bitcoin ETFs. This move by Franklin Templeton is expected to attract more investors to the Bitcoin market and further drive the growth of ETFs in the cryptocurrency space. With the increasing demand for cryptocurrency investment products, it’s likely that we’ll see more institutions and asset managers entering the market with their own ETF offerings.
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