The United States Securities and Exchange Commission (SEC) has delayed several issuers' decisions to list Options on spot Ethereum ETF products. Asspotlighted by ETF Store President Nate Geraci, the markets regulator pronounced the delay on Options targeted at Bitwise, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust and other trusts that want a related allowance.
Delay but not denial?
It is worth noting that, by law, the U.S. SEC can delay the approval of any ETF-related product for up to 240 days. At the end of this timeline, the regulator would likely have gathered enough reason to approve the product.
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Analysts consider this delay in the approval of Options on Ethereum ETF a good one. While an outright denial might prove excessive, the delay might help reshape the regulator’s perspective, especially with the likelihood ofSEC leadership change soon.
The ongoing delays might eventually translate to approval, granting investors an opportunity to hedge their bets on the respective ETF products. As part of the reasons for the delay, the markets regulator teased in its filing that it is considering the impact of preventing market manipulation.
SEC delays decision on options trading for spot eth ETFs...There is, however, options trading available on leveraged eth futures ETFs. I'm serious. pic.twitter.com/Lgflcbt6YR
— Nate Geraci (@NateGeraci) November 8, 2024
Other concerns center around whether the Ethereum ETF Options will offer a fair trading system to participants under Section 6(b)(5) of the Act.
Ethereum ETF outlook
The approval of the spot Ethereum ETF product came as an unexpected twist amid uncertainties around its status as a security. However, with the approval, more institutional investors have had to embrace the asset fully. This adoption is showcased by theinflow scored by the product in the past few days.
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According to data from Farside Investors, the Ethereum ETF offering received $85.9 million in inflows on Nov. 8. This positive flow marked its third consecutive netflow, buoyed by the positive performance of theFidelity Ethereum ETF product.
The sentiment for Ethereum is positive at the moment. With the coin changing hands for $3,046, up by 4.54% in 24 hours, any Options approval will help cement its long-term growth prospects.
