In summary
- The US SEC has postponed its decision on a proposed rule change by the Nasdaq International Stock Exchange to allow listing and trading of options on BlackRock’s iShares Ethereum Trust (ETHA).
- The decision, initially expected on September 26, was delayed until November 10, giving the SEC additional time to evaluate the proposal’s potential impact on market stability.
- The SEC also postponed its decision on a separate proposal by NYSE American LLC to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
The U.S. Securities and Exchange Commission has postponed its decision on a rule change proposed by the Nasdaq International Stock Exchange to allow the listing and trading of options on BlackRock’s iShares Ethereum Trust (ETHA).
Initially expected on September 26, the decision has been delayed until November 10, giving the SEC additional time to assess the proposal’s potential impact on market stability.
The SEC’s final decision on Ethereum options could further integrate the Cryptocurrency into traditional financial markets. Some argue that options for cryptocurrency ETFs could inject another wave of liquidity and spur bullish behavior in the market.
If approved, the options would follow the same regulatory framework as other ETF-linked derivatives, offering investors new ways to hedge or speculate on Ethereum price movements.
Under Section 19(b)(2) of the Exchange Act, the regulator may delay its decision for up to 90 days, allowing for a more thorough assessment of market stability and risk.
The proposal, submitted on July 22, aims to amend existing rules to allow options trading on BlackRock’s iShares Ethereum Trust, which owns Ethereum managed by Coinbase and cash reserves held by The Bank of New York Mellon.
The trust is structured as a passive investment vehicle, focusing solely on providing exposure to Ethereum without engaging in staking activities or proof-of-stake validation.
This decision comes on the heels of a similar approval on Monday when the SEC approved options trading on BlackRock’s iShares Bitcoin Trust (IBIT). The approval followed several amendments to address concerns about market manipulation and excessive risk-taking.
In a related development, the SEC has also postponed its decision on a separate proposal by NYSE American LLC to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
As the SEC mulls its decision on Ethereum options, the Ethereum ETF market is reeling. Ethereum ETFs saw their largest net outflows since July, with more than $79 million on Monday.
The outflow was led by Grayscale’s ETHE, which saw massive withdrawals of $80.6 million in a single day, the largest since the launch of Ether ETFs this year.
Edited by Sebastian Sinclair
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