SEC Delays Decision on BlackRock’s Spot Ethereum ETF Options Until April

The post SEC Delays Decision on BlackRock’s Spot Ethereum ETF Options Until April appeared first on Coinpedia Fintech News

In a latest development, the US SEC has postponed its decision on BlackRock’s proposal to list and trade options on its spot Ethereum exchange-traded fund (ETF). The new deadline for the SEC’s decision is set for April 9, 2025. 

SEC to Decide on Ethereum Trust Options by April 2025

The SEC said it will decide on April 9, 2025, whether to approve or disapprove allowing options trading on the world’s largest asset manager’s iShares Ethereum Trust, according to the filing. The SEC stated that it needs more time to review the proposed rule change and consider the issues raised before making a decision.

“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 agency said.

Notably, Bloomberg’s senior ETF analyst Eric Balchunas tweeted that the SEC has postponed its decision likely awaiting the confirmation of Paul S. Atkins. Additionally, CBOE has submitted a 19b-4 rule change proposal to the SEC to support in-kind creations and redemptions for Fidelity’s Bitcoin and Ethereum ETFs.

SEC Cautioned on Options Trading Due To Volatility

BlackRock’s spot Ethereum ETF was approved in May and began trading in the summer. In August, Nasdaq, on BlackRock’s behalf, filed a rule change to list and trade options for the iShares Ethereum Trust. Two letters were submitted about Nasdaq’s proposal. One, from Better Markets, warned the SEC to be careful before allowing options trading for spot bitcoin and Ethereum ETFs because of their volatility.

IBIT options have rapidly grown in popularity, reaching over $13 billion in open interest, which now makes up more than 55% of Deribit’s total options open interest. IBIT has quickly become one of the most active ETF options markets, even competing with more established markets like the iShares 20+ Year Treasury Bond ETF (TLT).

Besides, on Friday, the SEC requested public comments on a proposal from Cboe BZX Exchange Inc., representing Fidelity, to list and trade options on its spot Ethereum ETF. The deadline for submitting comments is 21 days after the proposal is published in the Federal Register.