SEC punts decision on options trading for spot Ethereum ETFs

Share This Post

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), according to a Nov. 8 filing.

The regulator cited a need for additional time to review the proposal and assess market implications. The decision is related to Bitwise’s ETHW, Grayscale’s ETHE and Ethereum Mini Trust, and BlackRock’s ETHA.

The regulator previously delayed the decision deadline for ETHW and ETHA on Sept. 26, while it was the first delay for Grayscale’s funds.

In August, Bloomberg ETF analyst James Seyffart predicted that the SEC’s decision regarding options on Ethereum ETFs might come in April 2025. 

Notably, 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.

Additionally, the filing emphasized that the Options Clearing Corporation (OCC) would issue final approval for options trading, even if it greenlights the applications. Additionally, it would also require the approval of the Commodity Futures Trading Commission (CFTC).

Sophisticated tools

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 particular 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, following the approval of options for Bitcoin (BTC) ETFs, that these tools attract more liquidity and, consequently, more “big fish.”

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.

The post SEC punts decision on options trading for spot Ethereum ETFs appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

AI Firm Genius Group Follows MicroStrategy, Buys $120M in Bitcoin

The post AI Firm Genius Group Follows MicroStrategy, Buys $120M in Bitcoin appeared first on Coinpedia Fintech News Artificial intelligence firm Genius Group (GNS) is making waves in the realm of

Canary Capital files application for a spot HBAR ETF

Nashville-based asset manager Canary Capital filed an S-1 form for an exchange-traded fund (ETF) tied to HBAR, the native asset of the Hedera blockchain The move comes weeks after Canary’s

Future Outlook For HBAR: Insights From Hedera Q3 Surge And Price Projections

Decentralized ledger platform Hedera has posted a solid set of third quarter (Q3) results, in line with broader market trends as the digital asset landscape enters a potentially transformative fourth

Coin Metrics’ Analysis: Options Market Reflects Strong Bullish Sentiment in Post-Election Bitcoin Rally

A recent report from Coin Metrics highlights how post-election trading in bitcoin (BTC) has reached unprecedented levels, with the options market indicating strong investor optimism Coin Metrics

Strategic Bitcoin Reserve Can Be Done In Trump’s First 100 Days: US Senator

United States Senator Cynthia Lummis of Wyoming is optimistic that a strategic Bitcoin reserve could be realized quite fast under the incoming Trump administration Following former President Donald

Dogecoin Unleashes 157% Weekly Boom As Musk-Trump Buzz Builds

Dogecoin (DOGE) is making news again, as analysts forecast a price increase Following Trump’s recent election victory, the cryptocurrency has enjoyed a phenomenal 157% weekly increase, fuelled