- SEC postpones decision on Ethereum ETF until December
- BlackRock Bitcoin ETF Gets Green Light for Options
- Ethereum ETF Options Could Innovate Crypto Market
The U.S. Securities and Exchange Commission (SEC) has extended the deadline for a decision on the listing of Ethereum ETF options, setting the new date for December 3. The delay affects a proposal that would allow Cboe Exchange to list options on several high-profile Ethereum ETFs, including the iShares Ethereum Trust and BlackRock’s Grayscale Ethereum Trust.
This is just the latest in a string of delays imposed by the SEC on crypto-related financial products. Earlier in September, a decision on whether to list Ethereum ETF options on Nasdaq was also delayed. The SEC’s additional precaution reflects a cautious approach to innovations in the digital asset space.
Meanwhile, despite delays regarding Ethereum, the SEC demonstrated some movement in the cryptocurrency sector by approving on September 20 Nasdaq's application to list options on BlackRock's iShares Bitcoin Trust.
However, these Bitcoin options are still awaiting further approvals from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation before they can actually begin trading, which is expected to begin in the first quarter of 2025.
Ethereum ETF options are seen as a potential milestone for the cryptocurrency market. “The approval of Ethereum ETF options would represent a monumental step forward and could open up new opportunities for investors interested in regulated investment strategies in the cryptocurrency space,” says Jeff Park of Bitwise Invest. A financial option is a contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a fixed price within a certain period of time.
Approval of these options would allow for the creation of more complex trading strategies, increase liquidity, and add flexibility to the growing cryptocurrency market.