The American Securities and Exchange Commission (SEC) announced this delayed its decision on approving options trading on Ethereum (ETH) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according to a November 8 report submit.
The regulator cited the need for additional time to review the proposal and assess market implications. The decision affects Bitwise’s ETHW, Grayscale’s ETHE and Ethereum Mini Trust, and BlackRock’s ETHA.
The regulator previously postponed the decision deadline for ETHW and ETHA to September 26, while this was the first delay for Grayscale funds.
In August, Bloomberg ETF analyst James Seyffart predicted the SEC’s decision regarding options on Ethereum ETFs coming in April 2025.
Notably, the SEC stated in the filings that interested parties can submit arguments within 21 days on whether options for Ethereum ETFs should be approved or disapproved.
Furthermore, the filing highlighted that the Options Clearing Corporation (OCC) would grant final approval for options trading even if it greenlights the applications. Moreover, it would also require the approval of the Commodity Futures Trading Commission (CFTC).
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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 specific 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, after the approval of options for Bitcoin (BTC) ETFs, that these tools attract more liquidity and therefore more ‘big fish’.
Adding options could generate much-needed cash flow in the Ethereum ETFs, whose net flows are negative $410 million, according to Farside Investors. facts.
