SEC Delays Decision on ETH ETF Options Trading

The US Securities and Exchange Commission (SEC) has postponed its decision to allow options trading on Ethereum ETFs.

In a filing on Tuesday, the regulator said it is extending the deadline for deciding on a proposed rule change by Nasdaq ISE to list and trade options on the BlackRock iShares Ethereum Trust (ETHA).

Separately, the SEC also stated in a different filing that it is also delaying its decision on a proposed rule change by NYSE American LLC to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.

New deadlines of 10 November for Nasdaq ISE and 11 November for NYSE American LLC have been set.

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

BlackRock and the Nasdaq applied to list options on the asset manager'sEthereum ETF in August. The rule change only applied to ETHA, which is the only ETH ETF listed on the Nasdaq.

Within the same week, Grayscale and Bitwise also submitted a proposal to list and trade options for their spot ETH ETFs.

In the filing, the NYSE asked the SEC to “permit the listing and trading of options” for the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE) and the Grayscale Ethereum Mini (ETH).

The exchange said options would "benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions."

Earlier this week, the SEC approved Nasdaq's application to list options on BlackRock's iShares Bitcoin Trust ETF, an essential step towards starting trading in derivatives linked to the ETF.

The contracts must still be authorised by Options Clearing and the Commodity Futures Trading Commission before trading commences.