The SEC is again delaying a decision on the position of Ethereum ETF options
The United States Securities and Exchange Commission (SEC) has again postponed its decision on whether Ether (ETH) can list tied options to identify exchange-traded funds (ETFs), according to an October 11 filing.
The SEC has delayed deciding on a rule change that would allow Cboe Exchange to list options tied to ETH funds in several popular positions, the filing said.
The deadline for a decision by the agency was extended from Oct. 19 to Dec. 3, according to the filing.
The SEC cleared options on iShare's spot Bitcoin ETF in September. Source: Eric Balchunas
Related: Bitcoin ETF Options Expected in Q1 2025: Bloomberg Analyst
In August, Cboe filed with the SEC for permission to list options on nine ETFs, including BlackRock's iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Grayscale Ethereum Trust and Grayscale Mini Ethereum Trust, among others.
In September, the SEC delayed a similar rule change to the Nasdaq electronic exchange to list options on the iShares Ethereum Trust.
On September 20, the SEC allowed Nasdaq to list options tied to BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT).
Bitcoin (BTC) options are awaiting final signals from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) before listing.
According to Bloomberg Intelligence analyst James Seifert, options on the BTC ETF could launch in the United States in the first quarter of 2025.
“I think it's possible for options before the end of the year, but more likely in Q1 2025,” Seifert said on October 9.
Source: Jeff Park
Options are contracts that give the right to buy or sell – “calls” or “puts” in trading parlance – an asset based on a specified price. In the US, if one party does not keep the agreement, the OCC intervenes and regulates the business.
The listing of spot crypto options on regulated U.S. exchanges – where the OCC protects traders from counterparty risk – represents a major development in crypto markets and “creates very compelling opportunities” for investors, Jeff Park, head of Alpha Strategies at Bitwise Invest, said in a September 20 X post.
Financial advisors, who control about half of the investment flows in the $9 trillion ETF market, rely on options to hedge against sharp market moves. More than 10% of advisors will actively use options to manage client portfolios by 2023, according to a study by The Journal of Financial Planning.
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