The United States Securities and Exchange Commission (SEC) has once more postponed its decision on whether to approve options tied to spot Ethereum exchange-traded funds (ETFs). According to an Oct. 11 filing, the SEC extended its review period for a proposed rule change that would allow the Cboe Exchange to list options on several popular spot ETH funds.
Initially set for Oct. 19, the SEC’s deadline has been moved to Dec. 3. This delay follows Cboe’s August request to list options on nine different ETFs, including BlackRock’s iShares Ethereum Trust ETF, Fidelity Ethereum Fund, and Grayscale’s Ethereum trusts.
Recurring Delays in ETF Options Approval
This isn’t the first time the SEC has delayed a decision on Ethereum ETF options. In September, the regulator also postponed a similar proposal from Nasdaq’s electronic exchange that sought approval to list options on the iShares Ethereum Trust.
However, on Sept. 20, the SEC did approve options tied to BlackRock’s Bitcoin ETF, known as iShares Bitcoin Trust (IBIT). These Bitcoin options are currently awaiting final clearances from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). If approved, Bitcoin options are expected to be available by the first quarter of 2025, though some analysts, like James Seyffart of Bloomberg Intelligence, suggest they could launch sooner.
Why Spot Crypto Options Matter
Options allow traders to buy or sell an underlying asset at a predetermined price, serving as a tool for risk management and speculative strategies. The OCC ensures the settlement of trades to protect against counterparty risks, which is particularly important for volatile assets like cryptocurrencies.
The introduction of regulated crypto options on U.S. exchanges represents a significant leap forward for the industry. According to Jeff Park, head of alpha strategies at Bitwise Invest, this move opens up new, lucrative opportunities for investors. Financial advisers also increasingly use options to hedge against market volatility, with over 10% of advisers employing options to manage client portfolios, as reported by The Journal of Financial Planning.
