Journalist
Posted:
- The SEC has postponed its decisions on BlackRock and Bitwise Ethereum ETF options until November.
- Ethereum ETFs are facing outflows of $624.4 million, led by Grayscale’s Ether ETF.
The U.S. Securities and Exchange Commission (SEC) has extended the timeline for reviewing Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum. [ETH] Trust (ETHA).
Blackrocks’ ETHA is postponed
A decision was initially expected to be made on September 26, but the SEC has now postponed its ruling until November 10.
In one statement published on September 24, the agency explained that the delay would provide additional time to evaluate the potential impact of this listing on market stability and ensure a thorough assessment of its implications for the broader financial landscape.
The press release added:
“The Commission believes it is appropriate to designate an extended period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.”
What’s behind this?
Under Section 19(b)(2) of the Securities Exchange Act, the SEC has the authority to delay its decision on proposals for up to 90 days.
This extension gives the regulator additional time to thoroughly assess potential market risks and stability before making a final ruling.
By doing so, the SEC ensures a comprehensive assessment of any impact the decision may have on the broader financial landscape.
In a separate development, the US SEC also postponed its decision on NYSE American’s proposal to list and trade options for Bitwise’s spot Ethereum ETFs, including the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust.
The deadline for this decision has been postponed to November 11.
Blackrock’s IBIT gets a nod
In a seemingly contrasting move, the SEC recently approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin. [BTC] ETF.
On September 20the SEC has officially given the green light to options trading for the iShares Bitcoin Trust, which will trade under the ticker symbol IBIT.
According to Nasdaq, these options will be available for trading under the same terms and regulations as other ETF options, further expanding the investment opportunities surrounding Bitcoin.
Is Ethereum ETF’s Performance to Blame?
That being said, Ethereum ETFs have experienced significant outflows since their launch, with cumulative outflows of $624.4 million, largely driven by Grayscale’s Ether ETF (ETHE).
Outflows have been particularly notable in recent weeks, with September 23 marking the largest net outflow since July, when $79 million was withdrawn.
Grayscale’s ETHE led this decline, seeing a staggering $80.6 million outflow in one day, the largest since spot Ether ETFs debuted earlier this year.
Despite occasional inflows, the general trend remains one of large withdrawals from these funds.