The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to approve or reject a proposed rule change that would allow options trading on certain spot Ethereum ETF. This delay affects the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
The rule change, originally submitted by NYSE American LLC on July 23, 2024, sought approval to list and trade options on these Ethereum-related products. The SEC first published the proposal for public comment in the Federal Register on August 13, 2024. Later, on September 24, 2024, the agency extended its review period to allow more time for evaluation. Then, on November 8, 2024, the SEC officially initiated proceedings to determine whether to approve or reject the proposal.
Now, the SEC has once again designated a longer period for action, further delaying the final decision. Bloomberg Senior ETF analyst Eric Balchunas commented on the postponement, stating, “SEC punting on spot Ether ETF options. I wouldn’t read too much into it, can’t imagine they don’t get approved eventually, likely waiting until Atkins is confirmed before moving on stuff.”
The reference to “Atkins” in Balchunas’ post likely alludes to a pending SEC appointment, which could influence the regulatory body’s approach to crypto-related financial products.
The SEC’s ongoing review of Ethereum ETF options comes amid increasing interest in cryptocurrency investment products. Several firms, including Grayscale and Bitwise, have sought approval for spot Ethereum ETFs, with options trading on these funds seen as a key step in market expansion.
The latest delay follows a pattern of cautious regulatory scrutiny applied to crypto-related financial instruments. While the SEC has previously approved Bitcoin ETF options, Ethereum-based products continue to undergo extended evaluation.
Market participants are closely watching for updates, as approval could impact Ethereum’s integration into traditional financial markets. However, with the SEC’s latest move, the timeline for a final decision remains uncertain.
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