The United States Securities and Exchange Commission has delayed making a call on the approval of options trading for various Ethereum ETFs. While a call was expected at the end of September, it has been extended through mid-November 2024.
Funds from the biggest players – including BlackRock’s iShares Ethereum Trust, ETHA; Bitwise’s Ethereum ETF, ETHW; and Grayscale’s Ethereum Trust, ETHE-are now under extended consideration. The new deadlines of the SEC are November 10 and 11, 2024.
The SEC used an extension allowed under a rule that permits additional time when considering the potential consequences of new financial products. BlackRock filed in July for approval of options trading on ETHA. Competing proposals came shortly after from Bitwise and Grayscale.
The delay comes just after the SEC approved options trading for Bitcoin ETFs. Last week, BlackRock received approval for its iShares Bitcoin Trust, or IBIT, but put strict controls in place to prevent market manipulation.
These moves reflect growing interest in options trading for both Bitcoin and Ethereum ETFs. This trading option gives a way for investors to hedge against risk or speculate on price movements in the highly volatile crypto market.
Investors are now only waiting for the final decision in November this year by the SEC. This may give a completely different turn to Ethereum’s role in financial markets.
