Ethereum ETF Options Still Waiting for Approval

Key Points:

• The SEC has delayed its decision for a second time on approving Ethereum ETF options, citing the need for further analysis and public feedback.
• Public comments on the SEC filing are open for 21 days, with rebuttals in 35 days, but no final decision date has been set.

The United States SEC has. delayed its decision for the second time to authorize spot Ethereum ETF options.

Read more: Cboe Ethereum ETF Options Continue to Be Delayed by SEC Until Dec 3 

SEC Delays Decision on Ethereum ETF Options Approval

In the filing, the SEC also asked for further analysis and public comment regarding whether the change of rule will be consistent with the Securities Exchange Act. Specifically, the amendment must be considered in terms of whether it provides a fair procedure, removes manipulative acts, and protects investors under Section 6(b)(5) of the Act.

Of particular interest in the review by the SEC are proposals by Bitwise and Grayscale, with a listing request by BlackRock’s iShares Ethereum Trust. NYSE American LLC proposed last August a rule change that would have allowed for Ethereum ETF options trading over three ETFs: Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini ETF.

SEC Considers Ethereum ETF Options as Public Comment Period Opens

The delay has drawn mixed reactions, some feel the frustration within the crypto community. Recently, crypto-friendly presidential election of Donald Trump brought speculation that a more friendly SEC administration may accelerate the approval of crypto products, inclusive of ETFs for other tokens like XRP. The friendlier regulatory approach may allow Ethereum ETF issuers to stake the asset in the future.

That said, the SEC filing requesting public comments for 21 days of rebuttal comments due in 35 days extends the timeline without a definitive date for a final decision. Approval will arguably offer investors a means to hedge or leverage the price movements of Ethereum in a regulated manner.