SEC Delays Ruling On Ethereum ETF Options Until December 3

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on whether to allow the CboE Exchange to list options on several spot Ether (ETH) exchange-traded funds (ETFs), according to an Oct. 11 filing.

The decision, which was expected by Oct. 19, has now been pushed to Dec. 3. This marks another instance of the SEC deferring its decision regarding options tied to physical Ethereum ETFs.

The SEC’s latest filing reveals that the commission has again pushed back its ruling on whether to permit the CboE Exchange to list options on several spot Ethеr ETFs. This proposal sought to list options tiеd to sеvеrаl populаr Ethereum ETFs, including industry giаnts likе BlаckRock’s iShаrеs Ethereum Trust ETF аnd Grаyscаlе Ethereum Trust. Thе dеcision to dеlаy follows а similаr postponеmеnt in Sеptеmbеr whеn Nаsdаq’s rеquеst to list options on thе iShаrеs Ethereum Trust wаs аlso dеfеrrеd.

The delays are not isolated incidents. In September, the SEC did give the go-ahead for Nasdaq to list options tied to BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT). However, final approvals are still pending from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC), with a full launch expected in the first quarter of 2025.

James Seyffart, an analyst with Bloomberg Intelligence, noted that while Bitcoin ETF options may launch by the end of 2024, the first quarter of 2025 is a more realistic timeline.

“I think before the end of the year is possible for options, but more likely in Q1 2025,” Seyffart stated on Oct. 9.

The potential for crypto options is attracting the attention of traditional finance players. Financial advisors, who manage a significant portion of the $9 trillion ETF market, increasingly rely on options to protect portfolios. A 2023 survey conducted by The Journal of Financial Planning indicated that over 10% of financial advisors actively use options in their client portfolios.

This trend, combined with the rising inflows into Bitcoin spot ETFs, signals a growing appetite among institutional investors for regulated crypto derivatives. On Oct. 11, Bitcoin spot ETFs recorded a net inflow of $253.6 million, while Ether spot ETFs saw a small net outflow of $0.1 million.

Data from SpotOnChain indicates a significant net flow rebound on the last trading day of the week, following three consecutive days of outflows. The total net flow for Bitcoin ETFs this week stands at a positive $348.7 million, with inflows occurring on two out of five trading days.

BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the leader in weekly inflows, attracting a substantial $140.7 million and adding a net 2,229 BTC to its holdings. The cumulative net inflow for IBIT now sits at an impressive $18.84 billion after 190 trading days.

In contrast, Ethereum ETFs have faced a tougher week, with only $1.9 million in inflows over the past five trading days. The cumulative net inflow for Ethereum ETFs after 58 trading days stands at -$551 million.