Latest Cryptocurrency News SEC Ethereum ETF Options Listing Blocked

Latest News SEC Announces Ethereum ETF Options Listing Blocked

The SEC announced Friday that it is extending its review of Cboe’s proposal to allow options trading on Ethereum-based exchange-traded funds (ETFs).

Initially set for a decision by October 19, the deadline has now been pushed to December 3 to provide additional time for evaluation.

Cboe’s proposal, filed in August, would enable options trading on Ethereum ETFs from major firms like Fidelity, Invesco, Grayscale, and others.

This move comes on the heels of the SEC’s approval of eight Ethereum ETFs in May 2024, following its green light for 11 Bitcoin ETFs in January.

Ethereum ETFs represented a regulatory milestone, yet they have underperformed compared to Bitcoin ETFs, with negative flows of $546 million since launch.

In contrast, Bitcoin ETFs garnered over $12 billion in inflows in their first quarter.

This delay came just weeks after the SEC approved options trading on BlackRock’s iShares Bitcoin Trust (IBIT) on Nasdaq.

Unlike holding shares, options allow traders to leverage positions, appealing to those seeking amplified exposure with less capital.

Bloomberg Intelligence analyst James Seyffart predicts that Bitcoin ETF options could start trading before the year’s end, “but more likely in Q1 2025.”