SEC Pushes Back Decision on Spot Ethereum ETF Options Again
SEC delays ruling on Ethereum ETF options
The United States Securities and Exchange Commission (SEC) has postponed its decision on allowing options tied to spot Ethereum exchange-traded funds (ETFs) to be listed. This is the latest in a series of delays, as revealed in a filing on October 11. The SEC has moved the deadline from October 19 to December 3.
Cboe Exchange had requested approval to list options for several popular spot Ether funds, including BlackRock’s iShares Ethereum Trust ETF and Grayscale Ethereum Trust. The SEC's decision to delay follows a similar ruling in September, where Nasdaq’s request to list options for iShares Ethereum Trust was also postponed.
However, in a move that could provide some optimism, the SEC approved Nasdaq's request to list options for BlackRock’s Bitcoin ETF in September. Final signoffs from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) are still required, but Bitcoin ETF options could be available as early as the first quarter of 2025.
Options allow investors to buy or sell assets at a specific price, providing both risk management and investment opportunities. The introduction of regulated spot crypto options in the US could be a significant milestone for the market, as noted by Bitwise Invest's Jeff Park, who described it as a "monumental advancement" for crypto trading.
Financial advisers are increasingly using options to manage market risks. A 2023 survey showed over 10% of advisers utilized options to protect client portfolios, demonstrating the growing importance of these tools in the $9 trillion ETF market.