SEC Postpones Decision on BlackRock and Bitwise Spot Ethereum ETF Options
The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on Nasdaq’s proposed rule change to approve the listing and trading of options for BlackRock and Bitwise’s spot Ethereum (ETH) exchange-traded funds (ETFs). Initially expected this Thursday, the decision has now been pushed to November 10, according to the SEC’s official statement released on Tuesday.
The SEC Extends Time for Review
In its release, the SEC stated, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change.” The postponement comes after the SEC approved the listing and trading of options on BlackRock’s iShares Bitcoin Trust (IBIT) just last week, marking a significant milestone for bitcoin ETFs.
The SEC also postponed a decision on the New York Stock Exchange (NYSE) American’s proposal to list options on Bitwise’s spot Ethereum ETFs, as well as the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust. A decision on this will now be made on November 11.
Crypto ETF Options and Market Impact
The Nasdaq International Securities Exchange initially filed the IBIT options listing proposal on August 6, aiming to make Ethereum ETFs more accessible to both retail and institutional investors in traditional markets. These ETFs are designed to simplify direct investments in ether while retaining an intrinsic value that mirrors the performance of Ethereum.
The SEC’s decision follows the approval of options on BlackRock’s Bitcoin Trust, a significant step for the broader crypto ETF market. According to Bloomberg’s senior ETF analyst Eric Balchunas, this approval represents a “huge win” for bitcoin ETFs. BlackRock’s ETHA fund, one of the nine spot Ethereum ETFs currently in the market, holds around $977 million in net assets as of Wednesday, with total net inflows reaching $1.1 billion. However, these ETFs have collectively seen over $624 million in outflows since their launch on July 23.
Source: The Block
