Capital market researchers: The exercise and settlement of ETF options have no significant impact on the underlying ETF

On March 27th, there has been a recent market view that the exercise and settlement of ETF options have led to a decline in the spot market. Capital market researchers believe that the attribution logic of this viewpoint is unclear and lacks theoretical basis. The market researchers mentioned above stated that on the exercise settlement day, the relevant accounts for exercise settlement showed overall net purchases of the underlying ETF, and the amount was not significant. Overall, the ETF options market is relatively small compared to the underlying ETF spot market, and only a small proportion (about 2%) of all option holdings require the use of the underlying ETF for exercise settlement. Therefore, the exercise settlement of ETF options has a neutral to positive impact on the underlying ETF overall, and the impact is not significant due to regulatory limitations.