SEC Delays Decision on BlackRock’s Spot Ethereum ETF Options Until April

The U.S. Securities and Exchange Commission (SEC) has hit the pause button on BlackRock’s plan to list and trade options on its spot Ethereum exchange-traded fund (ETF). Instead of a quick decision, the agency has pushed the deadline to April 9, 2025.

This delay raises questions – Is the SEC taking a cautious approach, or is there more happening behind the scenes? With Ethereum ETFs already trading and investor interest surging, why is options trading facing challenges?

The market is left wondering what comes next.

SEC Needs More Time to Review

According to the filing, the SEC will decide by April 9, 2025, whether to approve or reject options trading for BlackRock’s iShares Ethereum Trust. The agency said it needs extra time to fully review the proposal and consider any concerns before making a final decision.

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the agency said.

Why Did the SEC Delay?

Bloomberg’s senior ETF analyst, Eric Balchunas, suggested the delay might be linked to the pending confirmation of Paul S. Atkins. Meanwhile, the CBOE has submitted a 19b-4 rule change proposal to the SEC to allow in-kind creations and redemptions for Fidelity’s Bitcoin and Ethereum ETFs.

Surging Interest in ETF Options

BlackRock’s spot Ethereum ETF was approved in May and started trading in the summer. In August, Nasdaq, on behalf of BlackRock, proposed a rule change to enable options trading for the iShares Ethereum Trust.

The proposal drew mixed reactions. One letter, from Better Markets, warned the SEC to proceed cautiously due to the high volatility of spot Bitcoin and Ethereum ETFs.

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Despite concerns, ETF options trading is gaining momentum. IBIT options have seen rapid growth, reaching over $13 billion in open interest—now more than 55% of Deribit’s total options open interest. IBIT has quickly become one of the most active ETF options markets, even competing with the iShares 20+ Year Treasury Bond ETF (TLT).

Public Feedback Invited

Separately, the SEC has invited public comments on a proposal from Cboe BZX Exchange Inc., representing Fidelity, to list and trade options on its spot Ethereum ETF. The public has 21 days to submit comments after the proposal is published in the Federal Register.

With billions already pouring into ETF options, all eyes are on regulators. Time will tell what happens next.