SEC Delays Decision on Spot Ethereum ETF Trading Options

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on approving a rule change to allow options trading in Ethereum exchange-traded funds. In a filing on Tuesday, the SEC announced it was extending the deadline for its decision on Nasdaq ISE’s proposal to list and trade options on the BlackRock iShares Ethereum Trust, also known as ETHA. The new deadlines are set for November 10 for Nasdaq ISE and November 11 for NYSE American LLC.

Both BlackRock and Nasdaq submitted filings on August 6, proposing rule modifications to list and trade options for ETHA. The proposal seeks to broaden investor access and provide a low-cost investment vehicle for exposure to Ethereum. Following Nasdaq’s filing, NYSE American submitted a proposal to list options for Ethereum ETFs managed by Grayscale and Bitwise.

On September 20, the SEC cleared options trading for BlackRock’s iShares Bitcoin Trust (IBIT) fund, a significant milestone for spot Bitcoin ETFs. According to Bloomberg ETF analyst Eric Balchunas, this clearance is a “big win” for Bitcoin ETFs, as it is expected to bring greater liquidity and attract more investors.

The SEC’s approval of U.S.-listed Bitcoin ETFs has led to increased demand for cryptocurrency investment products, driven by growing interest from both retail and institutional investors. The number of investment vehicles offering direct and indirect exposure to cryptocurrency assets continues to rise.

Recently, Grayscale expanded its cryptocurrency trust products to include assets such as Sui, Bittensor, Avalanche, and Ripple.