The American Commission for Securities and Exchange (SEC) delayed its decision on February 7 on the opportunity to approve the negotiation options on the stock market funds (ETF) of the exchange of Ethereum (ETH), extending the period of examination until April 9.
The decision, described in a file of February 7, has an impact on the proposals linked to the Bitwise Ethw, Ethe de Graycale and Ethereum Mini Trust and Blackrock’s Etha.
The SEC cited the need for additional time to assess the proposal and assess the potential market implications. The regulator has postponed its decision three times now, the first two being in September 2024 and November 2024.
The Commission invited public comments for the next 21 days, allowing the market participants to submit arguments in favor or against approval options for ETHEREUM.
Beyond the approval of the SEC, the Clearing Corporation (OCS) options must also provide approval, as well as the Commodity Futures Trading Commission (CFTC), before trade can begin.
Essential tools
Optional contracts are financial derivatives that allow buyers and sellers to agree to buy or sell an asset at a predetermined price within a specified time. Like long -term contracts, institutional investors often use options for options for coverage and risk management.
Bloomberg Senior ETF Analyst Eric Balchunas Previously, the availability of options tends to attract liquidity and institutional investors, called “large fish” on the market.
The launch of options in the Bitcoin ETF (BTC) Spot was stellar. At noon, the volume of the Ibit de Blackrock options trading reached $ 1.6 billion. Balchunas called him “one ton” for the first day.
Despite their remarkable start, the position limit for Options of Options on ETF Bitcoin Spot is only 25,000, well below the good amount of 400,000 on the basis of estimates shared by the head of alpha strategies From Jeffrey Park.
Nasdaq recently table to lift The contract limits 250,000, equivalent to a risk exercising by 2.89%, but still below the right amount estimated by the park.
If they are approved, Ethereum options are likely to deal with similar regulatory restrictions.
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