SEC Delays Decision on Ethereum ETF Options Again
Date: 2025-02-10 Author: Gabriel Deangelo Categories: BUSINESS
The regulator has already postponed this issue several times — in September and November 2024 — and has now taken an additional 60 days to thoroughly analyze the possible market impact. The SEC emphasized that the extension will allow for a more comprehensive analysis and take into account public comments.
“The Commission believes it is necessary to extend the review period for this proposed rule change for an additional 60 days to thoroughly consider the issue and fully analyze the arguments presented,” the agency said in an official statement.
The delay affects several large companies, including Bitwise, Grayscale, Ethereum Mini Trust, and BlackRock, which have filed applications for options tied to spot Ethereum ETFs.
The SEC previously requested public comment on a proposal filed by Cboe BZX Exchange Inc. on behalf of Fidelity to list and trade options on such funds.
Option contracts give traders the right (but not the obligation) to buy or sell an asset at a fixed price at a predetermined time. These instruments are widely used in investment risk management and can help increase market liquidity.
According to analysts, the emergence of options on the Ethereum ETF could accelerate institutional adoption of the crypto asset and improve its market efficiency. Similar mechanisms have already been successfully applied to Bitcoin ETFs and assets backed by commodities such as gold.
Eric Balchunas, an ETF expert at Bloomberg, suggested that the SEC will eventually approve the instrument, and the current delay is due to personnel changes in the agency.
“The SEC has once again delayed consideration of options on the Ethereum ETF. I don’t think this should be taken as a negative signal - they should be approved eventually. They are likely waiting for Atkins' approval before moving forward," Balchunas wrote on social media X.
This refers to Paul Atkins, a former SEC commissioner who was nominated by Donald Trump to replace current Chairman Gary Gensler. If Atkins is approved by the Senate, his appointment could mean a more lenient approach to cryptocurrency regulation.
Despite the ongoing uncertainty, investors continue to show interest in spot Ethereum ETFs. According to SoSo Value, capital inflows into these instruments have continued for five days in a row, and the cumulative investment volume since their launch has exceeded $3 billion.
