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In an interesting development, the United States Securities and Exchange Commission (SEC) has delayed its decision on BlackRock’s request to offer options trading on its spot Ethereum ETF (exchange-traded fund).
New Deadline For Ethereum ETF Options Trading?
In a filing on February 7, the SEC
announced that it has delayed deciding whether to accept BlackRock’s request to list and trade options on its spot Ethereum ETF. Asset manager BlackRock submitted its proposal for options trading on its Ethereum ETF back in July 2024.
Following the appearance of the proposed rule change on the Federal Register in August 2024, the SEC’s decision was expected to arrive at most 180 days later: February 8, 2025. However, the latest move would push this decision by 60 more days, placing the new deadline on April 9, 2025. A part of the SEC filing read:
The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days. The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.
For context, options are a type of derivative contract that gives the holders the right to purchase or sell an underlying asset at a predetermined price and time. Similarly,
ETF options offer investors the right — but not the obligation — to acquire or sell an ETF at a predetermined price and time.
BlackRock’s spot Ethereum ETF (with the ticker ETHA) received approval with eight other funds in May 2024 and started trading later that Summer. While the investment products got off to a rough start, the ETH funds are beginning to find their footing, recording three weeks of positive inflows in the last four.
What’s The Reason For The Delay?
The market pump that followed Donald Trump’s triumph in the last US presidential election was a sign of good things to come for the crypto industry in the new administration. While it’s only been one month into the second stint of Trump’s era, things are beginning to look up for the digital asset industry — at least regulatory-wise.
Source: EricBalchunas/X
In one such move, Trump nominated pro-crypto businessman and former SEC Commissioner Paul Atkins as the next chairman of the regulatory agency. According to ETF expert Eric Balchunas, Atkins’ confirmation as the new SEC Chair might be the only thing holding up options trading on BlackRock’s Ethereum ETF.
The price of Ethereum on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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