The United States Securities and Exchange Commission (SEC) has delayed its decision to approve options trading on ethereum (eth) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according to a Nov. 8 statement. presentation.
The regulator cited the need for additional time to review the proposal and assess market implications. The decision is related 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, although it was the first delay for Grayscale funds.
In August, Bloomberg ETF analyst James Seyffart predicted that the SEC's decision regarding options on ethereum ETFs could x.com/JSeyff/status/1820916415227908108″>come April 2025.
Notably, the SEC stated in the filings that interested parties can present arguments within 21 days on whether the options for ethereum ETFs should be approved or disapproved.
Additionally, the presentation emphasized that the Options Clearing Corporation (OCC) would issue final approval for options trading, even if it greenlights applications. In addition, it would also require the approval of 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 certain time period.
Like futures contracts, institutional investors use options to hedge their positions in the spot market.
Eric Balchunas, Senior ETF Analyst at Bloomberg saying in September, after the approval of options for bitcoin ETF (btc), which these tools x.com/EricBalchunas/status/1837242504552534091″>attract more liquidity and, consequently, more “big fish.”
Adding options could generate much-needed cash flow into ethereum ETFs, whose net flows amount to negative $410 million, according to Farside Investors. eth/”>data.
