Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
CFTC Approves Clearing of Options on Spot Commodity ETFs

CFTC Approves Clearing of Options on Spot Commodity ETFs

CryptotaleCryptotale2024/11/15 23:07
By:Mercy
CFTC Approves Clearing of Options on Spot Commodity ETFs image 0
  • The CFTC released an official statement on the clearing of options on spot commodity ETFs.
  • With the approval, the ETFs could now be traded as contracts to enter the market.
  • Rostin Behnam stated that the overall markets are unregulated, giving mixed practices.

The Commodity Futures Trading Commission (CFTC) has paved the way for clearing Options on Spot Commodity Exchange Traded Funds (ETFs). This step will mark a development in the cryptocurrency market, especially for Bitcoin-related products. 

In an official press statement released on Friday, the Division of Clearing and Risk under the CFTC issued a staff advisory related to the clearing of Options on spot commodity ETFs. The announcement comes after spot Bitcoin ETFs were approved by the Securities and Exchange Commission (SEC). With the CFTC’s approval, the ETFs could now be traded as contracts to enter the market, allowing hedging and speculation. This was earlier limited to only futures-based products.

In his X post, financial analyst Eric Balchunas described the fast growth of Bitcoin ETFs and their integration into the conventional financial system. He further stated that options trading could greatly improve liquidity while maintaining the trends in the financial sector. This would enable investors to focus on their Bitcoin and leverage gains. 

Elaborating on the market condition, the Chair of CFTC, Rostin Behnam, stated that the overall markets are unregulated and often exhibit mixed practices. In response, Behnam urged the Commission to be more transparent with its data holdings, noting that marketing financial products are tied to high-risk commodities. 

Also, market observers pointed out that the underlying Bitcoin Cash markets are subject to volatility fluctuations, which could instigate problems based on settlements and pricing. Due to this, the CFTC Chair asserted that the cryptocurrency market requires comprehensive regulation to prevent any phishing attacks or fraudulent activities on the coins. 

This development enhances the trends in the financial sector where institutions embrace digital assets, making a connection between traditional investments and cryptocurrencies. Further, this collaboration between the SEC and the CFTC in regulating such innovations could bring more consistency in the future.

The post CFTC Approves Clearing of Options on Spot Commodity ETFs appeared first on CryptoTale.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!