SEC Extends Ethereum ETF Options Review Period Till April 9
2025-02-08
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The SEC has postponed its decision on approving options trading for Ethereum exchange-traded funds (ETFs).
The regulator has extended its review period by 60 days, setting April 9 as the new deadline.
SEC Delays Ethereum ETF Options Approval for the Third Time
On February 7, the SEC announced another delay in determining whether Ethereum ETFs can trade options.
This marks the third extension after previous deferrals in September and November 2024. The agency cited that it needs more time to assess the potential impact on the market and gather public input, opening a 21-day window for comments.
“The Commission is extending the time period for approving or disapproving the proposed rule change for an additional 60 days. 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 SEC stated.
The delay affects applications from several major firms, including Bitwise, Grayscale, Ethereum Mini Trust, and BlackRock. The SEC emphasized that the extension allows for a more comprehensive review before making a final decision.
This decision follows the regulator’s earlier request for public comments on a proposal by Cboe BZX Exchange Inc., which was submitted on behalf of Fidelity. The proposal seeks approval to list and trade options tied to Fidelity’s spot Ethereum ETF.
Options contracts provide traders with the right—but not the obligation—to buy or sell an asset at a specific price within a set timeframe. These financial instruments play a crucial role in risk management and price speculation.
Analysts believe that the introduction of Ethereum ETF options could accelerate institutional adoption and enhance market efficiency. Notably, a similar regulatory framework already applies to Bitcoin ETFs and commodity-backed assets like gold.
Meanwhile, Bloomberg ETF analyst Eric Balchunas has suggested that while approval seems likely, the delay may be linked to ongoing leadership changes at the SEC.
“SEC punting on spot Ether ETF options. I wouldn’t read too much into it, can’t imagine they don’t get approved eventually, likely waiting until Atkins is confirmed before moving on stuff,” Balchunas stated.
Former Commissioner Paul Atkins, nominated by Donald Trump to replace Gary Gensler, is awaiting Senate confirmation. His appointment is widely viewed as a potential shift toward a more crypto-friendly regulatory approach.
Despite ongoing uncertainty, demand for spot Ethereum ETFs continues to grow. Data from SoSo Value indicates that these funds have experienced five consecutive days of net inflows, pushing total investments beyond $3 billion since their introduction.