The SEC has once again delayed approving NYSE’s request for options listing and trading on ETH ETFs.
The US Securities and Exchange Commission (SEC) has pushed back on approving Ether (ETH) exchange-traded funds (ETFs) from being listed on the New York Stock Exchange (NYSE). The exchange had requested the regulator to allow it to trade the options in July through the approval of a rule change.
With the regulator’s approval, NYSE will be permitted to list and trade the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and other trusts holding ETH, according to a November 8 SEC filing. In the meantime, the agency has asked the public for feedback through written comments on whether it should accept the rule change or not.
More Options on ETH ETFs to be Approved
The SEC must also respond to Nasdaq’s request to list and trade options on BlackRock’s iShares Ethereum Trust. However, it delaying NYSE’s request could indicate the same with Nasdaq. It was initially supposed to make its decision by September but chose to push it until November 11. Now, it has pushed it even further and has time until December. The SEC also delayed Cboe’s request for options on ETH ETFs on October 11. That, too, was moved to December.
Still, it is worth noting that the regulator gave the nod for NYSE, Nasdaq, and Cboe exchanges to list and trade options on bitcoin (BTC) ETFs—11 funds to be specific—over the past two months. The exchanges made the ask in August. Despite the SEC greenlighting these options, the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) must agree for them to officially go up and witness trading.
Options contracts work to reduce counterparty risk from trading activity. The OCC ensures all trades occur by stepping in when parties on either side of transactions do not abide by their end of the deal. This guarantee is expected to attract tremendous institutional and retail interest in BTC and ETH.
Many believe these options will go through without doubt after Donald Trump’s presidential victory on November 6. The pro-crypto president promised to fire current SEC chair Gary Gensler for his actions stifling the crypto industry’s growth. With that, ETFs of other crypto assets, including Solana (SOL), Litecoin (LTC), and more, are also expected to go up. Issuers have already filed for these ETFs over the past few months. The SEC has already begun reviewing an ETF request from Grayscale—the fund will comprise a basket of crypto assets.
