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). The regulator needs more time to review the proposal and assess market implications. The decision is related to Bitwise’s ETHW, Grayscale’s ETHS and Ethereum Mini Trust, and BlackRock’s ETHA.
The SEC recently delayed the decision deadline for ETHW and ETHA, and this is the first delay for Grayscale’s funds. Bloomberg ETF analyst James Seyffart predicted in August that the SEC’s decision regarding options on Ethereum ETFs might come in April 2025. 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.
The Options Clearing Corporation (OCC) would issue final approval for options trading, even if it greenlights the applications. The SEC also requires approval from the Commodity Futures Trading Commission (CFTC). Options contracts are derivatives that allow two parties to agree to buy or sell an asset at a specific price and within a particular time frame.
Institutional investors use options to hedge against their positions in the spot market. 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.
