SEC Delays Decision on Ethereum ETF Options Until November
Date: 2024-09-25 Author: Henry Casey Categories: CRYPTO PAYMENTS
In two separate filings, the SEC said it needs more time to review proposed rule changes that would allow Nasdaq ISE LLC and NYSE American LLC to offer options on spot Ethereum ETFs.
Currently, four funds are seeking SEC approval: BlackRock’s iShares Ethereum Trust (ETHA), Bitwise’s Ethereum ETF (ETHW), and Grayscale’s Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH).
BlackRock filed for a rule change for its ETHA product in August 2024, and Bitwise and Grayscale followed with filings through NYSE American LLC that same month. The final decision was expected on September 26 and 27, 2024, but the SEC extended the review period to November 10 and 11, 2024.
This is standard practice under Section 19(b)(2) of the Exchange Act, which allows the SEC to extend the review period and is consistent with its cautious approach to cryptocurrency exchange-traded products.
Meanwhile, on September 20, the SEC approved options on BlackRock’s iShares Bitcoin Trust, allowing Nasdaq to list IBIT options under current listing standards. However, that approval took nearly eight months to complete.
Bitcoin ETFs Accrue $390.7 Million in Four Days, Ethereum ETFs Rebound
During the review process, Nasdaq’s application has been amended several times since its January 11, 2024, filing to provide additional information on bitcoin-based products. These changes were necessary for the SEC to fully review and address regulatory concerns about market manipulation and other risks before approval.
The SEC’s decision to delay approval comes as interest in spot Ethereum ETFs has waned. Over the past seven weeks, these funds have seen outflows of more than $620 million. Meanwhile, spot Bitcoin ETFs have attracted more than $17 billion since launch.
In other news, BlackRock has amended its custodian Coinbase to require withdrawals from Bitcoin ETFs to be processed within 12 hours.
The change comes amid investor concerns about Coinbase’s transparency in handling Bitcoin assets. Fast withdrawals should reassure investors that their assets are being properly managed and are not being used as “paper BTC” or IOUs.
