SEC punts decision on options trading for spot Ethereum ETFs SEC punts decision on options trading for spot Ethereum ETFs
BlackRock, Grayscale, and Bitwise might have to wait until April 2025 for a options trading approval on their Ethereum ETFs.
1 min read
Updated: Nov. 10, 2024 at 7:39 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 on approving options trading on Ethereum (ETH) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according to a Nov. 8 filing.
The regulator cited a need for additional time to review the proposal and assess market implications. The decision is related to Bitwise’s ETHW, Grayscale’s ETHE and Ethereum Mini Trust, and BlackRock’s ETHA.
The regulator previously delayed the decision deadline for ETHW and ETHA on Sept. 26, while it was the first delay for Grayscale’s funds.
In August, Bloomberg ETF analyst James Seyffart predicted that the SEC’s decision regarding options on Ethereum ETFs might come in April 2025.
Notably, the SEC stated in the filings that interested parties can submit arguments within 21 days about whether options for Ethereum ETFs should be approved or disapproved.
Additionally, the filing emphasized that the Options Clearing Corporation (OCC) would issue final approval for options trading, even if it greenlights the applications. Additionally, it would also require the approval of the Commodity Futures Trading Commission (CFTC).
Sophisticated tools
An options contract is a derivative that allows two parties to agree to buy or sell an asset at a specific price and within a particular time frame.
Like futures contracts, institutional investors use options to hedge against their positions in the spot market.
Bloomberg senior ETF analyst Eric Balchunas said in September, following the approval of options for Bitcoin (BTC) ETFs, that these tools attract more liquidity and, consequently, more “big fish.”
Adding options might generate much-needed cash flow in the Ethereum ETFs, whose net flows amount to negative $410 million, according to Farside Investors’ data.
Mentioned in this article
Ethereum 
Bitcoin 
Bitwise 
BlackRock 
Grayscale Investments Grayscale Ethereum Mini Trust Grayscale Ethereum Trust 
Bitwise Ethereum Fund iShares Ethereum Trust ETF 
James Seyffart 
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
$87,163.96
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Ethereum Mini Trust (Ticker: ETH) is a pioneering investment vehicle designed to provide investors with exposure to Ethereum (ETH) through a regulated security format.
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.
The Bitwise Ethereum Fund (ETHW) by Bitwise is a professionally managed investment product that provides investors with direct exposure to Ethereum (ETH).
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.
James Seyffart is a well-regarded analyst at Bloomberg Intelligence, specializing in Exchange-Traded Funds (ETFs) and the broader fund industry.
Eric Balchunas is an American author, ETF analyst, and Senior ETF Analyst at Bloomberg Intelligence.