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    SEC again delays decision on spot Ethereum ETF options

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    The SEC has delayed its decision on whether to allow the Cboe Exchange to list options tied to various Ether ETFs, pushing back the deadline to December 3rd. Previously, the SEC held off on similar requests from Nasdaq. While Bitcoin ETF options have been approved by the SEC, they still await final approval from the CFTC and OCC. Spot crypto options listing on US exchanges signifies a major step for the crypto market, providing significant investment opportunities. Financial advisors, who manage half of the investment in the $9 trillion ETF market, often rely on options.

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    The US Securities and Exchange Commission (SEC) has hit the pause button again on making a decision about whether an exchange can list options tied to spot Ether (ETH) exchange-traded funds (ETFs), according to a document filed on Oct. 11.

    The SEC is taking more time to think over a suggested rule change which would let the Cboe Exchange to list options tied to a bunch of popular spot ETH funds.

    The SEC was supposed to make a decision by Oct. 19, but this deadline has been pushed back to Dec. 3 according to the same filed document.

    In August, the Cboe sent in a request to the SEC, asking for permission to list options on nine ETFs, including BlackRock’s iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Grayscale Ethereum Trust, and Grayscale Mini Ethereum Trust among others.

    But in September, the SEC decided to hold off on similar proposed rule changes from Nasdaq’s electronic exchange that was also asking to be allowed to list options on iShares Ethereum Trust.

    On Sept. 20, the SEC gave Nasdaq the green light to list options tied to BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT).

    The Bitcoin (BTC) options are just waiting on the final go-ahead from the Commodity Futures Trading Commission (CFTC) and Options Clearing Corporation (OCC) before they can be listed.

    Pundits believe these BTC ETF options will probably launch in the US by early 2025, as stated by James Seyffart, a financial analyst at Bloomberg Intelligence.

    Options are contracts that give you the right to buy or sell, or in trader language – “call” or “put”, a particular asset at a certain price. If someone doesn’t hold up their end of the deal, the OCC steps in and settles everything in the US.

    Spot crypto options being listed on regulated US exchanges, where the OCC makes sure traders are safe against counterparty risk, is a big step forward in crypto markets and opens up some seriously great opportunities for investors according to Jeff Park, who heads up alpha strategies at Bitwise Invest.

    Financial advisors who manage about half of the investment flows in the gigantic $9 trillion ETF market depend on options to protect against major market swings. A survey by the Journal of Financial Planning showed over 10% of advisors actively used options to manage their client’s portfolios as of 2023.

    Source: Cointelegraph

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