Bitcoin has exploded back into the limelight in recent weeks as U.S. president-elect Donald Trump and Elon Musk fuel huge bitcoin price predictions.
The bitcoin price has rocketed toward $100,000 per bitcoin, with its rally pushing the combined crypto market back to around $3 trillion for the first time since 2021 amid wild rumors the U.S. could be beaten to nation-state bitcoin adoption.
Now, as a top Federal Reserve official suddenly flips on bitcoin, the bitcoin price is braced for a huge U.S. spot bitcoin exchange-traded fund (ETF) earthquake.
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Bitcoin has exploded higher this year, with the bitcoin price boosted by the debut of BlackRock’s … [+]
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Bitcoin spot ETFs, which have surged to become some of the fastest-growing ETFs of all-time following their January debut and led by BlackRock’s $42 billion bitcoin fund, could be about to be approved for options trading after the Commodity Futures Trading Commission (CFTC) issued an advisory notice.
“[I]n light of relevant precedents in the courts, it is substantially likely these spot commodity ETF shares would be held to be securities,” a CFTC spokesperson wrote.
“Therefore, [the Division of Clearing and Risk’s] DCR position is the listing of these shares on [Security and Exchange Commission] SEC-registered national securities exchanges does not implicate the CFTC’s jurisdiction, and therefore, the clearing of these options by OCC would be undertaken in its capacity as a registered clearing agency subject to SEC oversight.”
Bitcoin spot ETF options were given the green light by the U.S. SEC in September when BlackRock’s proposal to list and trade options for its IBIT fund was approved, with the CFTC notice the “second hurdle they needed to clear,” according to Bloomberg Intelligence analyst Eric Balchunas.
Options trading for the fleet of a dozen U.S. spot bitcoin ETFs is expected to “attract more liquidity which will in turn attract more big fish” to the market as institutions and market regulators warm up to the technology.
“The CFTC just dropped a notice clearing the way for spot bitcoin ETF options to be listed,” Balchunas posted to X, adding he expects the options to list “very soon.”
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The bitcoin price has surged higher this year, rocketing since Donald Trump won the White House and … [+]
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“Bitcoin ETF options are sooner than you think,” Jeff Park, head of alpha strategies at Bitwise, posted to X, calling the listing of options trading “the most significant market structure change for bitcoin since the ETF launch.”
BlackRock’s bitcoin fund has grown by $13 billion since Donald Trump’s U.S. election victory with BlackRock winning 85% of the record $1.3 billion of inflows that hit the combined U.S. spot bitcoin ETFs on the Thursday after the election, according to Kaiko Research.
Meanwhile, Cathie Wood, a so-called innovation and disruption investor who runs the Ark Invest fund, has reiterated her $1.5 million bitcoin price prediction—which she expects will make bitcoin a $30 trillion asset by 2030.
“We have a 2030 target, in our base case it’s around $650,000, in our bull case, it’s between $1 million and $1.5 million,” Wood told CNBC, adding “regulatory relief” in the wake of Donald Trump’s presidential victory and increased interest from Wall Street will fuel a bitcoin price boom.
“It is a new asset class and what that means is institutions, and asset allocators are saying ‘this asset is behaving differently from all our other assets and we need to include it,'” Wood said.