SEC Delays Ethereum ETF Options Decision After Bitcoin ETF Approval

YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has delayed its decision on Ethereum ETF options, initially expected by Sep. 26, now postponed to Nov. 10. This decision impacts the proposed options for BlackRock’s iShares Ethereum Trust (ETHA), extending the regulatory review period by over a month.

SEC Extends Ethereum ETF Decision, Delays Market Impact

The SEC’s extended timeline allows more time to evaluate the risks associated with Ethereum ETF options. Submitted on July 22, the proposal involves the listing and trading of options tied to BlackRock’s iShares Ethereum Trust, which is managed by Coinbase and holds assets with The Bank of New York Mellon. These options could give investors new ways to hedge or speculate on Ethereum price movements, but the SEC is taking a cautious approach to assess market stability and potential risks.

Under Section 19(b)(2) of the Securities Exchange Act, the SEC can delay its ruling by up to 90 days, a period it’s using to scrutinize the market risks associated with introducing Ethereum ETF options.

ETH ETF Market Faces Largest Outflows Since July

While the SEC reviews the proposed changes, the Ethereum ETF market has experienced its largest net outflows since July. On Monday, over $79 million was pulled from Ethereum ETFs, with Grayscale’s spot Ether ETF (ETHE) seeing a record $80.6 million in withdrawals. This marks the largest single-day outflow since Ethereum ETFs were launched earlier this year. These outflows may reflect uncertainty among investors as they wait for the SEC’s decision on Ethereum options.

Ethereum ETFs Await SEC Approval as Bitcoin Options Move Forward

The SEC delayed approving Ethereum ETF options, following a recent ruling on Bitcoin ETF options. Earlier, BlackRock’s iShares Bitcoin Trust (IBIT) received approval. The SEC’s approval for Bitcoin options included amendments to address concerns over market manipulation and risk-taking.

In addition to the BlackRock proposal, the SEC has also delayed decisions on other Ethereum-related ETFs, including the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.