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SEC Postpones Decision Once More on Spot Ethereum ETF Options Trading
- The SEC postponed its decision on Spot Ethereum ETF options trading, requesting additional public and expert input.
- After receiving no comments in September, the SEC is now encouraging feedback with deadlines for initial and rebuttal comments.
- The agency aims to ensure the proposed rule change aligns with legal requirements to prevent fraud and promote fair trade.
- Meanwhile, Ethereum’s price rose by 30% last week, buoyed by recent election outcomes and significant inflows into ETH ETFs.
The US Securities and Exchange Commission (SEC) has again delayed a decision on options trading on Spot Ethereum exchange-traded funds (ETFs). According to a filing from 8 November, the agency is seeking more input from the public and experts on the potential impact of the proposal.
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In September the SEC delayed the process after it had received no comments. In July, the NYSE American filed with the regulator to “permit the listing and trading of options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETH), the Grayscale Ethereum Mini Trust, and any trust that holds ether”.
SEC Asks for Comments on Filings
In October the agency gave the go-ahead for Spot Bitcoin ETF options trading, which had raised hopes for Ethereum ETFs.
The SEC said it once again received no comments and now encourages public comments within 21 days and “rebuttal comments” within 35 days; however, it didn’t provide a specific date for a final decision on the matter.
The SEC wrote that it’s “instituting proceedings to allow for additional analysis of the proposed rule change’s consistency with [the law]”, and said this requires:
That the rules of a national securities exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to remove impediments to and protect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.
SEC filing Cryptocurrency options trading allows traders to leverage market movements, hedge, or speculate, but due to its complexity and risks, a solid understanding of options trading and the crypto market is essential before engaging.
Ethereum Price Up, ETFs With Increase in Inflows
Meanwhile, the price of ETH is up over 30% in the past week, which saw all crypto assets gain on the back of Donald Trump’s win in the US election. At the time of writing, ETH stands at US$3,193 (AU$4,842), an increase of 2.5% in the past 24 hours.
The US Spot Ethereum ETFs have also seen a busy week. After a lackluster few trading weeks, the funds received US$191 million (AU$289.7 million) in net inflows in the three trading days following the election.
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BlackRock’s ETHA ETF was the strongest performer and now holds almost half a million in ETH.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
