SEC Delays Decision on Spot Ethereum ETF Options, Extending Deadline to December
The United States Securities and Exchange Commission (SEC) has once again delayed its decision on whether to approve options tied to spot Ethereum (ETH) exchange-traded funds (ETFs). The regulator’s latest postponement extends the deadline for its ruling from October 19 to December 3, according to an October 11 filing.
The SEC’s decision revolves around a proposed rule change allowing the Cboe Exchange to list options on several spot Ethereum funds. These include notable funds such as BlackRock’s iShares Ethereum Trust ETF, Fidelity’s Ethereum Fund, and Grayscale’s Ethereum Trust, among others.
This is not the first delay of its kind. In September, the SEC similarly postponed ruling on a separate proposal from Nasdaq’s electronic exchange, which sought approval to list options on the iShares Ethereum Trust ETF. This pattern of delays has left the crypto community awaiting a clear signal from regulators on the future of Ethereum-focused investment products.
Bitcoin ETF Options Gaining Ground
While the SEC’s decision on Ethereum ETF options remains pending, it has already approved Bitcoin ETF options. On September 20, the SEC authorized Nasdaq to list options tied to BlackRock’s iShares Bitcoin Trust (IBIT). However, the listing still awaits final clearance from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).
James Seyffart, a Bloomberg Intelligence analyst, believes that options on Bitcoin ETFs could become available as soon as the first quarter of 2025. “I think before the end of the year is possible for options, but more likely in Q1 2025,” Seyffart said on October 9.
Also read: Crypto Fraudster Horst Jicha on the Run After Skipping $5 Million Bond Backlash
Ethereum ETF Options: The Next Frontier?
The addition of spot crypto options on regulated U.S. exchanges represents a significant advancement in the digital asset market. By offering these options, exchanges give institutional investors and financial advisers more tools to manage portfolio risk. Jeff Park, Bitwise Invest’s head of alpha strategies, referred to the listing of crypto options on regulated exchanges as a “monumental advancement” that creates “compelling opportunities” for investors.
In traditional markets, financial advisers often rely on options to hedge against sharp price movements. A survey by The Journal of Financial Planning found that over 10% of financial advisers actively used options in managing their clients’ portfolios in 2023. Since advisers control up to half of the investment flows in the $9 trillion ETF market, introducing crypto options could further solidify the integration of digital assets into mainstream financial markets.
