SEC Delays Decision on BlackRock’s Ethereum ETF Options

The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on whether to approve options for BlackRock’s iShares Ethereum Trust ETF (ETHA).

BlackRock, alongside Nasdaq, proposed a rule change last August to allow options trading for its spot Ethereum ETF. The SEC now has until April 9 to make a decision regarding the approval.

The agency has justified the extended timeline, deeming it necessary to thoroughly review the proposal before making a final call. This comes after the SEC previously authorized options trading for BlackRock’s spot Bitcoin ETF in September, which quickly became a significant success. By November, options for the Bitcoin ETF, known as IBIT, saw explosive growth, with open interest (OI) surging to over $13 billion, accounting for more than half of Deribit’s options OI.

IBIT options rapidly became a dominant force in the ETF options market, rivaling long-established funds like the iShares 20+ Year Treasury Bond ETF (TLT). The success of IBIT options, particularly in terms of liquidity and adoption, has made it a popular choice for American traders.

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In the wake of a slower start, BlackRock’s ETHA ETF has seen a notable rise in interest, attracting $10.6 million in inflows recently. Despite a rocky beginning, ETHA was the only spot Ethereum ETF to show positive movement yesterday. This marks a significant shift as Ethereum products gain more traction in the market.

Alexander Zdravkov