The US SEC moved the approval date for Cboe’s Ethereum ETF options listing request to December 3.
The US Securities and Exchange Commission (SEC) has delayed approving the Cboe Exchange’s request to list options of Ethereum exchange-traded funds (ETFs) from being offered. The approval is slated to come with the regulator deciding on a rule change that would allow exchanges to offer options related to ETH ETFs, according to an October 11 SEC filing.
That decision was supposed to occur on October 19. However, the SEC has pushed it back to December 3. In September, the agency took to a similar ruling for BTC ETFs and approved Nasdaq’s electronic securities exchange to debut options tied to BlackRock’s iShares Bitcoin Trust ETF (IBIT). The spot Bitcoin options await authorizations from the Commodities Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC), which are the next and final steps before the offerings launch.
However, in the same month, the SEC delayed another approval for Nasdaq’s request to list options surrounding nine ETH ETFs, including BlackRock’s iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Grayscale Ethereum Trust, and others. Cboe filed for authorization for listing ETH ETFs in August.
Crypto ETF Related Options Could Begin Trading Early Next Year
According to Bloomberg Intelligence analyst James Seyffart, BTC ETF options will likely launch in the first quarter of 2025. “I think before the end of the year is possible for options, but more likely in Q1 2025,” he noted during a panel discussion at the Permissionless conference on October 9.
Options contracts grant traders the right to buy or sell products, with the OCC taking care of counterparty risk. If a party fails to adhere to the agreement, the agency steps in to settle the trade. Jeff Park, head of alpha strategies at Bitwise Invest, said the approval for crypto ETF options would mark a “monumental advancement” for the alternative assets industry. He added that it creates “extremely compelling opportunities” for investors as cryptocurrencies become legitimate in the TradFi world.
He expressed those views last month since financial advisors operating funds in the ETF vertical rely on options to hedge against market downturns. That would make crypto investment offerings all the more enticing for mainstream investors. Over 10% of financial advisors used options to navigate the ETF market and manage their clients’ portfolios last year, based on a survey conducted by The Journal of Financial Planning.
