NEWSLETTER
The United States Stock Exchange and Securities Commission (SEC) It has been delayed On February 7, your decision on whether you will approve the options of options in Bag Bag (ETF) of ethereum (eth), extending the review period until April 9.
The decision, outlined in a presentation of February 7, impacts the proposals related to Bitwise, Ethe and ethereum Mini Trust from Bitwise, and the Blackrock ETHA.
The SEC cited the additional time to evaluate the proposal and evaluate the potential implications of the market. The regulator has postponed its decision three times, with the first two in September 2024 and November 2024.
The Commission has invited public comments during the next 21 days, allowing market participants to present arguments for or against the approval of the Etfs ethereum options.
Beyond the approval of the SEC, the Clearing Corporation of Options (OCC) must also provide approval, together with the Basic Products Commerce Commission (CFTC), before the negotiation can begin.
Very necessary tools
Option contracts are financial derivatives that allow buyers and sellers to accept buying or selling an asset at a predetermined price within a specific period of time. Like futures contracts, institutional investors often use options for coverage and risk management options.
Bloomberg ETF senior analyst Eric Balchunas He previously stated that the availability of options tends to attract greater institutional and institutional investors, called “large fish” in the market.
The launch of options in the ETF Spot bitcoin (btc) was star. For noon, the volume of the Blackrock Ibit option debut reached $ 1.6 billion. Balchunas called him “a ton” for the first day.
Despite its remarkable start, the position limit for options in bitcoin Spot's ETFs is only 25,000, well below the good amount of 400,000 based on estimates shared by the head of Strategy Alpha Bitwise Jeffrey Park.
Nasdaq recently Filed to collect The contract limit to 250,000, equivalent to an exercise risk of 2.89%, but still below the fair amount estimated by Park.
If approved, ethereum options are likely to face similar regulatory restrictions.
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