The US Securities and Exchange Commission has again postponed the decision on a new crypto listing. According to the Oct. 11 filing, the committee has postponed decisions on options tied to Ether Exchange Traded Funds (ETFs). Let’s see what investors were hoping for and what happens.
Another postponement for Ether ETF options
On October 11, the SEC withdrew its ruling at the suggestion of the Cboe Exchange. The exchange wants to list options on several popular Ether ETFs. The SEC was originally scheduled to make a decision on October 19. Now the new deadline is December 3. This isn’t the SEC’s first delay when it comes to crypto-related decisions. In fact, they postponed a similar request from Nasdaq in September.
Interestingly, however, the SEC did give on September 20th Nasdaq the green light to list options for BlackRock’s Bitcoin ETF. These Bitcoin options are still awaiting approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) before they can be traded.
What are options?
Options are contracts that allow you to buy or sell an asset, such as Ether, at a specific price. There are two types: ‘call’ options if you want to buy, and ‘put’ options if you want to sell. It’s a way to lock in a price and avoid being caught out by large price swings.
In the US, if a party cannot adhere to the agreement, the OCC steps in to handle matters. Having crypto options on regulated exchanges is a big deal. It is a major leap forward for the crypto markets. According to Jeff Park of Bitwise Invest, it is a “monumental advancement” that offers exciting opportunities for investors.
Why investors care about options
Options aren’t just for big traders. Financial advisors also use options as a way to manage risk. Some rely on it to protect their clients from major market fluctuations. If Ether ETF options get the green light, it could open up new strategies for them.
What’s next?
Right now, all eyes are on the SEC. Their decision is postponed until December 3. Will they approve the Ether ETF options, or will we see another postponement? Investors are eagerly awaiting what will happen next.