SEC postpones decision to open spot Ethereum ETF options trading

The US Securities and Exchange Commission (SEC) has postponed its decision on whether to approve a rule change allowing options trading on spot ethereum exchange-traded funds (ETFs).

The agency said in a presentation On Tuesday, it announced that it would extend the deadline for a decision on a proposed rule change by Nasdaq ISE to list and trade options on BlackRock iShares ethereum Trust, also known as ETHA.

In an aside presentation Released today, the SEC also decided to delay its decision on a proposed rule change by NYSE American LLC to list and trade options on the Bitwise ethereum ETF, Grayscale ethereum Trust, and Grayscale ethereum Mini Trust.

“The Commission considers it appropriate to designate a longer period for taking action on the proposed rule change so that it has sufficient time to consider it,” the SEC wrote.

The new deadlines are now set for November 10 for Nasdaq ISE and November 11 for NYSE American LLC.

On August 6, BlackRock and Nasdaq submitted a proposal to amend the rules governing the listing and trading of ETHA options. The proposal aims to expand investor access and offer them a low-cost investment vehicle to gain exposure to ethereum.

Shortly after filing with Nasdaq, NYSE American submitted a proposal to list and trade options for ethereum ETFs managed by Grayscale and Bitwise.

On September 20, the SEC approved options trading for BlackRock’s iShares bitcoin Trust (IBIT), marking a major development for spot bitcoin ETFs. According to Bloomberg ETF analyst Eric Balchunas, the approval is a “big win” for bitcoin ETFs as it is expected to bring more liquidity and attract larger investors.

Following the SEC’s approval of publicly traded bitcoin spot ETFs in the US, there is a growing demand for cryptocurrency investment products. The trend reflects the growing interest among retail and institutional investors to diversify their portfolios with digital assets.

Morgan Stanley, which owned $187 million worth of IBIT shares as of June 30, now allows Their financial advisors are promoting bitcoin ETFs to a select group of clients. ETF experts believe this move marks the beginning of widespread adoption of digital assets among Wall Street giants.

There is also a rise in the number of investment vehicles that provide direct and indirect exposure to crypto assets. Grayscale has recently expanded its cryptocurrency trust products to include those from Sui, Bittensor, Avalanche and Ripple, to name a few.