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The United States Securities and Exchange Commission (SEC) has delayed deciding on Nasdaq’s proposed rule change to allow the listing and trading of options on BlackRock’s Ethereum exchange-traded fund (ETF), the iShares Ethereum Trust (ETHA).
This comes despite the SEC recently approving options trading for BlackRock’s iShares Bitcoin Trust (IBIT), which marked a significant development for spot Bitcoin ETFs.
SEC Presses Pause On Ethereum ETF Options
While the Securities and Exchange Commission was initially expected to give its decision on BlackRock Ethereum options trading on Sept. 26, the regulator has now postponed making the ruling to Nov. 10.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC said in a Tuesday press release.
In a separate filing, the top Wall Street watchdog also delayed a decision on NYSE American LLC’s proposed rule change to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. The new deadline for NYSE American has been set for Nov. 11.
If approved, these options on the ETH ETFs will follow the same listing and trading rules as other trusts, including criteria for underlying securities, expirations, strike prices, and trading halts.
Options Are A Huge Deal For Crypto ETFs
The Nasdaq International Securities Exchange submitted a filing with the SEC proposing a rule change to list and trade options tied to BlackRock’s ETHA on August 6. The move seeks to broaden the range of investment tools for Ethereum and make crypto investments more accessible for traditional investors.
The exchange also said the rule change would benefit investors by offering a lower-cost way to gain exposure to the second-largest crypto by market cap, Ether, and meet their investment needs, which generally involve hedging and speculation.
For the uninitiated, options are an important vehicle for traders looking to hedge against possible losses in their investments or to bet on the future price of an underlying asset, like a stock or ETF. Options offer flexibility as they give the buyer the right to buy or sell an asset at a set price and on an agreed date.
Shortly after Nasdaq’s filing, NYSE American submitted a proposal to list and trade options on trusts managed by Grayscale and Bitwise.
The postponement on Tuesday came after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT) last week. Bloomberg’s senior ETF analyst Eric Balchunas described the move as a “huge win” for Bitcoin ETFs as it is expected to attract more liquidity and, subsequently, more “big fish.”
Nermeen Nabil Khear