SEC Delays Decision on Options Trading for BlackRock and Bitwise Spot Ethereum ETFs
The United States Securities and Exchange Commission (SEC) has once again exercised caution by delaying its decision on allowing options trading for the BlackRock and Bitwise spot Ethereum (ETH) exchange-traded funds (ETFs) until mid-November. According to September 24 filings, this notable delay underscores the SEC’s need for additional review time.
Previously, the SEC had set initial deadlines for BlackRock and Bitwise to November 10 and November 11, respectively. Initially, the review period for BlackRock’s iShares Ethereum Trust ETF was slated to end on September 26, but the proposal filed by Nasdaq on July 22 prompted the SEC to extend its decision window.
Importance of Options Trading in Crypto ETFs
Recently, BlackRock’s iShares Bitcoin Trust (IBIT) received the green light for options trading from the SEC on September 20. This move was described by Bloomberg’s senior ETF analyst, Eric Balchunas, as a “huge win” for Bitcoin (BTC) ETFs, potentially driving increased liquidity and attracting significant financial participants.
Moreover, Matthew Sigel, head of digital assets research at VanEck, emphasized the disparity between Bitcoin’s derivatives market and its equity and commodity counterparts. According to a report by K33 Research that Sigel shared, Bitcoin’s derivatives market is significantly smaller.
Potential Growth for Ethereum with SEC Approval
Ethereum’s options volume, compared to Bitcoin’s, highlights a notable difference. Between September 1 and September 22, the total options volume for Bitcoin traded on top centralized crypto exchanges was around $33.3 billion. For Ethereum, this volume was approximately $9.2 billion – a figure more than three times smaller. This gap underscores the immense growth potential for Ethereum ETFs, especially with the anticipated SEC approval for options trading.
The decision to delay reflects the SEC’s careful approach, ensuring that all facets of the proposal are thoroughly examined. Given the rapid evolution of crypto assets and market dynamics, such due diligence is crucial.
Gino Matos
Gino Matos is a law school graduate and seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).
Assad Jafri
AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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