The SEC has decided to delay the assessment of options trading for many Ethereum ETFs, including those from BlackRock and Grayscale, until November 2024.
The U.S. Securities and Exchange Commission (SEC) has postponed its judgement on options trading for numerous spot Ethereum ETFs until November 2024. BlackRock, Greyscale, and Bitwise are among the companies that are awaiting approval for their Ethereum ETFs.
This delay is the result of the SEC’s recent approval of options trading for BlackRock’s spot Bitcoin ETF. BlackRock’s iShares Ethereum Trust (ETHA), Bitwise’s Ethereum ETF (ETHW), Grayscale’s Ethereum Trust (ETHE), and its Ethereum Mini Trust (ETH) were all subject to an extension of the Securities and Exchange Commission’s assessment on September 23, 2024.
The SEC has postponed the previous deadlines of September 26 and 27, 2024, for the funds to November 10 and 11, 2024. This extension is in accordance with Section 19(b)(2) of the Securities Exchange Act, which permits the Securities and Exchange Commission (SEC) to extend the deadline in the event that additional evaluation is necessary. The SEC declared that it required “plenty time to evaluate the proposed rule change” for BlackRock’s iShares Ethereum Trust. Bitwise and Greyscale submitted comparable proposals through NYSE American LLC, while BlackRock submitted its proposal to the Nasdaq ISE exchange in July 2024.
Following its approval of options trading for Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), the SEC has adopted a cautionary approach to Ethereum ETFs. The conditions of that approval were rigorous, with the intention of restricting market manipulation. The significance of conducting a comprehensive assessment of the risks and implications of these financial products prior to their approval is underscored by the delay in making a decision regarding Ethereum ETFs.
Options trading enables investors to mitigate against prospective losses or speculate on price movements, thereby enhancing their flexibility in volatile markets. Catherine Clay, Executive Vice President of CBOE Global Markets, underscored the advantages of options trading, saying that it provides crypto investors with downside protection and risk management.
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