SEC rejects decision to open options trading on Ethereum spot ETFs

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The US Securities and Exchange Commission (SEC) has delayed its decision on whether to approve a rule change to allow options trading on Ethereum exchange-traded funds (ETFs).

The agency said in a filing on Tuesday that it is extending the deadline for its decision on a proposed rule change by the Nasdaq ISE to list and trade options on the BlackRock iShares Ethereum Trust, also known as ETHA.

In a separate filing issued today, the SEC also decided to delay ruling on a proposed rule change by NYSE American LLC to list and trade options on the Bitwise Ethereum ETF, Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust.

“The Commission believes it is appropriate to designate a longer period in which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC wrote.

The new deadlines are now set for November 10 for the Nasdaq ISE and November 11 for the NYSE American LLC.

BlackRock and Nasdaq filed a filing proposing a change to the rules for listing and trading options for ETHA on August 6. The proposal seeks to expand access to investors and provide them with a low-cost investment vehicle to gain exposure to Ethereum.

Shortly after Nasdaq’s filing, NYSE American presented a proposal to list and trade options for Ethereum ETFs managed by Grayscale and Bitwise.

Options trading for BlackRock’s iShares Bitcoin Trust (IBIT) was approved by the SEC on September 20, marking an important development for spot Bitcoin ETFs. According to Bloomberg ETF analyst Eric Balchunas, the approval is a “huge win” for Bitcoin ETFs as they are expected to bring more liquidity and attract larger investors.

Following the SEC’s approval of US-listed Bitcoin spot ETFs, there is growing demand for crypto investment products. The trend reflects growing interest among retail and institutional investors in diversifying their portfolios with digital assets.

There is also an increase in the number of investment vehicles that provide direct and indirect exposure to crypto assets. Grayscale has recently expanded its crypto trust products to include ones for Sui, Bittensor, Avalanche and Ripple to name a few.

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