Ethereum ETF Options

The U.S. Securities and Exchange Commission (SEC) has postponed its decision on BlackRock’s request to introduce spot Ethereum ETF options trading. Key Takeaways:- The SEC has postponed its ruling on BlackRock’s request for Ethereum ETF options trading to April 9, 2025.- The delay also affects Fidelity’s similar proposal, while the CBOE seeks approval for in-kind creations and redemptions for Bitcoin and Ethereum ETFs. According to a recent filing, the agency now plans to make a final ruling by April 9, 2025, citing the need for additional time to evaluate the proposed rule change and address potential concerns. BlackRock, the world’s largest asset manager, launched its spot Ethereum ETF earlier this year after securing regulatory approval in May. In August, Nasdaq, on behalf of BlackRock, filed for a rule amendment to facilitate options trading for the iShares Ethereum Trust. The SEC’s delay affects not only BlackRock but also Fidelity, which has submitted a similar proposal for its own Ethereum ETF. The regulator has opened a public comment period for Fidelity’s request, allowing feedback within 21 days from its publication in the Federal Register. Industry analysts speculate that the delay may be linked to Paul Atkins's pending confirmation. Meanwhile, the Chicago Board Options Exchange (CBOE) has submitted a separate proposal seeking SEC approval for in-kind creations and redemptions for Fidelity’s Bitcoin and Ethereum ETFs. The proposal to allow spot Ethereum ETF options trading has generated mixed reactions. Better Markets, a nonprofit organization, has urged the SEC to exercise caution, citing the inherent volatility of cryptocurrency-based ETFs. However, interest in ETF options trading continues to grow. The iShares Bitcoin Trust (IBIT) options market has expanded rapidly, surpassing $13 billion in open interest and accounting for over 55% of Deribit’s total options open interest. IBIT has emerged as a dominant player, even competing with traditional options markets such as the iShares 20+ Year Treasury Bond ETF (TLT). Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.