The SEC has once again delayed a decision on another cryptocurrency listing. According to an Oct. 11 filing, the commission has delayed a decision on options tied to an Ethereum exchange-traded fund (ETF). Let’s explore what investors can expect and what’s happening.
Ethereum ETF options extended again
On October 11, the SEC delayed its ruling on a proposal by the Chicago Board Options Exchange (Cboe Exchange). The exchange wanted to list options on several popular Ethereum ETFs. Initially, the SEC was supposed to make a decision by October 19. Now, the new deadline is December 3. This is not the first time the SEC has postponed a decision related to cryptocurrency. In fact, they postponed a similar request from Nasdaq in September.
Interestingly, however, the SEC did approve Nasdaq to list options on the BlackRock Bitcoin ETF on September 20. These Bitcoin options are still awaiting approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) before they can be traded.
What are options?
An option is a contract that lets you buy or sell an asset (like Ethereum) at a specific price. There are two types of options: a "call" option if you want to buy, and a "put" option if you want to sell. It's a way to lock in a price and avoid being affected by large price swings.
In the U.S., if one party fails to honor an agreement, the Office of the Comptroller of the Currency steps in. Listing crypto options on a regulated exchange is a big deal. It’s a big leap for the crypto market. Jeff Park of Bitwise Invest said it’s a “huge step forward” that opens up exciting opportunities for investors.
Why Investors Care About Options
Options aren’t just for big traders. Financial advisors use options to manage risk, too. Some rely on options to protect clients from big market swings. If Ethereum ETF options are approved, it could open up new strategies for them.
What's next?
Currently, all eyes are on the U.S. Securities and Exchange Commission (SEC). Their decision has been delayed until December 3. Will they approve the Ether ETF options? Or will we see another delay? Investors are anxiously waiting to see what happens next.
