SEC pushes back Ethereum ETF options decision to November

As a seasoned crypto investor with a knack for navigating regulatory waters, I find myself both intrigued and patiently waiting for the SEC’s decision on the approval of options trading for spot Ethereum ETFs. With my years of experience in this dynamic market, I’ve learned that delays are often part of the game, and the SEC’s cautious approach towards crypto-related ETPs is nothing new.


The U.S. Securities and Exchange Commission (SEC) has postponed making a decision about whether or not to allow options trading related to Ethereum exchange-traded funds (ETFs).

In two distinct submissions, the Securities and Exchange Commission (SEC) stated they need “adequate time to evaluate” the suggested rule adjustment enabling Nasdaq ISE LLC and NYSE American LLC to facilitate options trading for Ethereum Spot ETFs.

As a researcher, I am observing that my focus is on the Ethereum-related investment funds currently under review by the commission. These include the BlackRock’s iShares Ethereum Trust (ETHA), Bitwise’s Ethereum ETF (ETHW), Grayscale’s Ethereum Trust (ETHE), and the Ethereum Mini Trust (ETH).

In August 2024, BlackRock submitted an application for a rule adjustment regarding its ETHA product. During the same month, both Bitwise and Grayscale also made similar submissions through NYSE American LLC.

Originally, it was anticipated that a final decision would be made on the 26th and 27th of September, 2024. However, due to an extension in the review process, the regulator has now moved the decision date to the 10th and 11th of November, 2024.

According to Section 19(b)(2) of the Securities Exchange Act, this falls under a provision that allows for extended consideration by the regulatory body. This is in line with their careful stance on exchange-traded products (ETPs) related to cryptocurrencies.

On September 20th, the regulatory body granted approval for options related to BlackRock’s iShares Bitcoin Trust, enabling Nasdaq to list these options according to their ongoing listing requirements. Notably, this approval followed an approximately eight-month evaluation process.

Starting January 11, 2024, Nasdaq repeatedly revised several submissions to offer more details about Bitcoin Exchange-Traded Products (ETPs). These revisions were essential for a comprehensive evaluation by the Securities and Exchange Commission (SEC), allowing them to carefully address any regulatory issues related to market manipulation and other potential risks before giving approval.

The Securities and Exchange Commission’s extension is happening at a time when there’s decreasing enthusiasm for Ethereum ETFs that trade in the spot market, as nine such funds have seen seven uninterrupted weeks of withdrawals totaling more than $620 million. In stark contrast, Bitcoin ETFs dealing in the spot market have attracted over $17 billion since they were introduced.

In other news, BlackRock recently filed an amendment requiring its custodian, Coinbase, to process Bitcoin ETF withdrawals within 12 hours. 

This change came in response to rising concerns among investors about Coinbase’s transparency in handling Bitcoin assets. The quicker withdrawal process is intended to reassure investors that their holdings are being appropriately managed and not through “paper BTC” or IOUs.

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2024-09-25 10:30