SEC’s Ethereum ETF Decision: A Comedy of Delays and Dilemmas! 🎭

by

Ah, the U.S. Securities and Exchange Commission, that illustrious body of bureaucratic brilliance, has once again decided to play the waiting game with the fate of Cboe Exchange’s application to list options on Fidelity Investments’ spot Ethereum exchange-traded fund. One might wonder if they are simply enjoying a leisurely stroll through the garden of indecision. 🌼

In a regulatory filing dated the 28th of February, the SEC, in its infinite wisdom, proclaimed that it would be postponing its decision on the Ethereum (ETH) product. Perhaps they are pondering the existential questions of life, or maybe just contemplating the merits of a good cup of tea. ☕

Under the grand tapestry of U.S. federal law, our dear agency has a luxurious 60 additional days to reach a final verdict if it cannot muster a decision within the initial 180-day review period. Thus, Cboe must twiddle its thumbs a tad longer before it can bask in the glory of knowing whether it has received the coveted green light to list options contracts on Fidelity’s Ethereum Fund, affectionately known as FETH. 🟢

In its grand announcement, the SEC declared it was extending the review period to allow “sufficient time to consider the proposed rule change.” How generous of them! One can only hope they are not too distracted by the latest trends in cryptocurrency fashion. 💃

Cboe first filed for regulatory approval to list Ether ETF options on the 19th of August, 2024. A mere weeks later, on the 4th of September, the SEC, in a fit of enthusiasm, published the proposed rule change in the Federal Register, thus opening the floodgates for public comment. How thrilling! 🎉

When is the SEC’s final decision?

As fate would have it, federal law bestows upon the SEC a generous 180 days after the initial filing of a proposed rule change to make a decision. Should they fail to reach a conclusion within that period, they are granted an additional 60 days, but no more, before they must either approve or reject the application. How delightfully dramatic! 🎭

For this particular proposal, the timeline suggests that March 3 would have marked the 180-day deadline, while May 2, 2025, will herald the full 240-day review period. Thus, the SEC now has until May 2, 2025, to grace us with its final ruling. Will they keep us in suspense until then? Only time will tell! ⏳

Whether the regulator will choose to wait until that fateful day remains shrouded in mystery. However, given the SEC’s recent pivot towards a more supportive stance, the market sentiment is leaning towards optimism. How refreshing! 🌈

By the time the SEC finally decides on Cboe’s application, it will have already rendered a verdict on another Ethereum ETF options proposal. Such efficiency! This relates to the April 2025 deadline for options on BlackRock’s iShares Ethereum Trust. Nasdaq ISE, in a fit of ambition, filed an application to list and trade options contracts tied to ETHA in July 2024. 📈

In a filing dated the 7th of February, 2025, the SEC designated April 9, 2025, as the deadline for a final decision. Will they rise to the occasion? Or will they continue to bask in the glow of procrastination? Only the future holds the answer! 🔮

Read More

2025-03-01 00:20