Wall Street is being taken over by ETFs that track bitcoin. Experts predict that options will be the next big thing.

Experts predict that the launch of spot bitcoin ETFs this month will lead to a surge in crypto product offerings.

Catherine Clay of Cboe Global Markets believes that options are a natural next step for ETFs.

The firm's global head of derivatives stated that the options' ability to provide downside hedging and risk-defined exposures into bitcoin would greatly benefit the end investor and the ecosystem, according to CNBC's "ETF Edge" this week.

The Cboe, the largest US options exchange, has filed with the SEC to offer options linked to bitcoin exchange-traded products. According to its news release, the exchange anticipates that these options will start trading later this year.

Financial futurist Dave Nadig at VettaFi believes that options on crypto funds could attract institutional investors, who have been hesitant to invest in digital assets.

In the interview, he stated that hedge fund players would start appearing in the crypto space. These individuals, who previously did not directly speculate on crypto within the crypto ecosystem, would now have something to engage with.

Zero-day options, or contracts that expire on the day they are traded, commonly known as "0DTEs," were suggested by Nadig as the ultimate goal for bitcoin derivatives products.

If the trend in Bitcoin is similar to that of single stocks, we can expect retail investors and institutions to shift towards zero-day options trading on Bitcoin.

Clay, Cboe's, cautioned that those products might be quite distant.

We have not yet received approval to list options, so let's not jump the gun and consider 0DTEs. Instead, we should approach the process of obtaining options for these ETFs in a thoughtful and intelligent manner that fosters the growth of new entrants in the market.