SEC postpones Ethereum ETF options trading decision to November

The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding options trading for several Ethereum (CRYPTO:ETH) ETFs.

Initially expected by late September, the SEC has extended the review period until November 10 and 11, 2024, for Ethereum-focused funds from BlackRock, Bitwise, and Grayscale.

BlackRock’s iShares Ethereum Trust (ETHA), Bitwise’s Ethereum ETF (ETHW), and Grayscale’s Ethereum Trust (ETHE) are among the products awaiting regulatory approval for options trading.

This extension is in line with Section 19(b)(2) of the Securities Exchange Act, allowing the SEC additional time to assess proposals.

The regulator stated that more time is needed to thoroughly evaluate the implications of approving these financial products.

BlackRock submitted its proposal for options trading on its ETHA product in July 2024 through Nasdaq ISE.

Similarly, Bitwise and Grayscale filed for approval via NYSE American LLC, seeking to introduce options trading for their Ethereum ETFs.

This delay follows the SEC’s recent approval of options trading for Bitcoin (CRYPTO:BTC) ETFs.

Last week, BlackRock's iShares Bitcoin Trust (IBIT) received approval with specific restrictions aimed at reducing market manipulation risks.

Investors have shown growing interest in the introduction of options trading for both Bitcoin and Ethereum ETFs.

This trading mechanism provides a way for market participants to speculate on price movements or hedge against potential risks.

Catherine Clay, Executive Vice President at CBOE Global Markets, emphasized the importance of options in managing downside risk and providing risk-defined exposures for investors.

At the time of writing, the Ethereum (ETH) price was $2,644.68.