SEC delays decision on options trading for BlackRock and Bitwise spot Ethereum ETFs SEC delays decision on options trading for BlackRock and Bitwise spot Ethereum ETFs
Despite approving options trading for IBIT on Sept. 20, the regulator claimed it needs more time to consider the decision on Ethereum ETFs.
1 min read
Updated: Sep. 24, 2024 at 10:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The US Securities and Exchange Commission (SEC) has delayed its decision to allow options trading for BlackRock and Bitwise’s spot Ethereum (ETH) exchange-traded funds (ETFs) until mid-November, according to Sept. 24 filings.
The new deadlines for BlackRock and Bitwise are Nov. 10 and Nov. 11, respectively. The SEC stated it needed more time to consider the proposal and extended the initial 45-day review period that would have ended on Sept. 26 for BlackRock since Nasdaq filed for the rule change for the iShares Ethereum Trust ETF on July 22.
The same reasoning was applied to Bitwise’s ETHW, which had its decision date delayed to Nov. 11 since the proposed rule change was filed one day after BlackRock’s.
Options are a big deal for crypto ETFs
BlackRock’s iShares Bitcoin Trust (IBIT) received clearance for options trading from the SEC on Sept. 20.
Bloomberg senior ETF analyst Eric Balchunas said this was a “huge win” for Bitcoin (BTC) ETFs, as it will attract more liquidity and, consequently, more “big fish.”
Matthew Sigel, head of digital assets research at VanEck, also shared a report by K33 Research on Sept. 24, which highlighted that Bitcoin’s derivatives market is 279x smaller than its equity and commodity counterparts.
Notably, the Bitcoin options volume traded on the top five centralized crypto exchanges was equivalent to roughly $33.3 billion between Sept. 1 and Sept. 22.
Meanwhile, Ethereum options’ volume in the same period amounted to just $9.2 billion, over three times smaller than Bitcoin’s. Thus, Ethereum ETFs have even more room for growth with the addition of options trading by the SEC.
Mentioned in this article
Ethereum 
Bitcoin 
BlackRock 
Bitwise 
Grayscale Investments iShares Bitcoin Trust iShares Ethereum Trust ETF 
Bitwise Ethereum Fund Grayscale Ethereum Trust 
Eric Balchunas Author 
Gino Matos
Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Bitcoin
$105,254.59
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The iShares Ethereum Trust ETF (ETHA) by BlackRock is an innovative investment product designed to provide investors with exposure to Ethereum, one of the leading cryptocurrencies.
The Bitwise Ethereum Fund (ETHW) by Bitwise is a professionally managed investment product that provides investors with direct exposure to Ethereum (ETH).
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.