Ethereum ETF Options Trading Faces Another Setback with SEC Delay

• The SEC has delayed its decision to approve options trading on Ethereum ETFs on the NYSE.
• The delay is due to the additional time required to review the proposal and assess its market implications.
• The agency aims to analyze if the proposal complies with the Securities Exchange Act.

The US Securities and Exchange Commission (SEC) delayed its decision on approving options trading for Ethereum ETFs on the New York Stock Exchange (NYSE). The SEC cited the need for more time to review the proposal, affecting multiple ETFs, including the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust.

In a November 8 filing, the SEC announced its second delay in the ETF approval. The regulator highlighted the need for more time to assess the proposal’s broader market implications.

The agency also plans to analyze whether the proposed rule change adheres to the Securities Exchange Act. The SEC stated that the analysis will focus on ensuring the proposal prevents manipulative practices, promotes fair trade, and protects investor interests.

NYSE’s Proposal for Ethereum ETF Options

The NYSE filed the proposed rule change on July 23, 2024, to list options on several Ethereum-based ETFs, including the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust, as well as other trusts holding ether. This was intended to provide investors with more access to Ethereum price movements through options, similar to existing commodity-backed ETFs.

The SEC previously delayed the decision deadline for ETHW and ETHA on September 26. Following the NYSE’s filing, James Seffart, Bloomberg’s senior ETF analyst, predicted a possible delay. He stated that the SEC’s final decision on the ETF might come around April 9, 2025.

Read also: SEC Approves Bitcoin ETF Options on NYSE: A New Era for Crypto Traders

The SEC opened a 21-day public comment period for the NYSE’s ETF proposal. While the SEC has not announced a decision date, it stated that the Options Clearing Corporation (OCC) will issue the final approval for options trading. The proposal also requires approval from the Commodity Futures Trading Commission (CFTC).