SEC Delays Decision on Options Trading for Ethereum ETFs

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The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on the proposed rule change permitting options trading on spot Ethereum exchange-traded funds (ETFs).

The agency announced in a filing on Tuesday that it has extended the deadline for its decision on a proposal by Nasdaq ISE to list and trade options on the BlackRock iShares Ethereum Trust, referred to as ETHA.

In a separate filing issued today, the SEC also chose to postpone its ruling on a proposed rule change from NYSE American LLC regarding options trading on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.

“The Commission finds it suitable to designate a longer period to take action on the proposed rule change so that it can properly evaluate the proposal,” the SEC stated.

The new deadlines have been set for November 10 for Nasdaq ISE and November 11 for NYSE American LLC.

On August 6, BlackRock and Nasdaq submitted a filing proposing a rule change to list and trade options for ETHA, aimed at enhancing investor access and providing a cost-effective investment vehicle for gaining exposure to Ethereum.

Shortly after Nasdaq’s submission, NYSE American proposed to list and trade options for Ethereum ETFs managed by Grayscale and Bitwise.

On September 20, the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT), marking a significant milestone for spot Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas described this as a “major victory” for Bitcoin ETFs, anticipated to boost liquidity and attract larger investors.

With the SEC’s approval of U.S.-listed spot Bitcoin ETFs, interest in crypto investment products is surging. This trend reflects a growing desire among both retail and institutional investors to diversify their portfolios with digital assets.

Morgan Stanley, which held $187 million worth of IBIT shares as of June 30, now enables its financial advisors to recommend Bitcoin ETFs to a select group of clients. ETF experts view this as the inception of broader acceptance of digital assets among major financial institutions.

The number of investment vehicles providing both direct and indirect exposure to crypto assets is also on the rise. Recently, Grayscale has broadened its crypto trust offerings, adding products for Sui, Bittensor, Avalanche, and Ripple, among others.