The United States Securities and Exchange Commission (SEC) delayed its decision to approve options trading on Ethereum (ETH) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according to a November 8 report. deposit.
The regulator cited the need for more time to review the proposal and assess the market implications. The decision is linked to Bitwise’s ETHW, Grayscale’s ETHE and Ethereum Mini Trust, and BlackRock’s ETHA.
The regulator previously delayed the decision deadline for ETHW and ETHA to September 26, while this was the first delay for Grayscale’s funds.
In August, Bloomberg ETF analyst James Seyffart predicted that the SEC’s decision regarding Ethereum ETF options could come in April 2025.
Notably, the SEC said in filings that interested parties can submit arguments within 21 days on whether the options for Ethereum ETFs should be approved or disapproved.
Additionally, the filing highlights that the Options Clearing Corporation (OCC) will issue final approval for options trading even if it greenlights the applications. Additionally, this would also require approval from the Commodity Futures Trading Commission (CFTC).
Sophisticated tools
An options contract is a derivative that allows two parties to agree to buy or sell an asset at a specific price and within a specific time frame.
As with futures contracts, institutional investors use options to hedge against their positions in the spot market.
Eric Balchunas, senior ETF analyst at Bloomberg said in September, following the approval options for Bitcoin ETFs (BTC), as these tools attract more liquidity and, therefore, more “big fish”.
Adding options could generate much-needed cash flow into Ethereum ETFs, which have net flows of negative $410 million, according to Farside Investors. data.
