SEC Delays Decision on BlackRock's Ethereum ETF Options Trading, Extends Review to April
The U.S. Securities and Exchange Commission (SEC) has once again extended its timeline for deciding on a key aspect of BlackRock's iShares Ethereum Trust. The agency announced on Friday that it will delay its decision on whether to allow options trading on the spot Ethereum exchange-traded fund (ETF) until April 9, 2025, citing the need for more time to consider the proposal.
Options on the Table: BlackRock's Proposal for Enhanced Trading
The proposal, originally filed by Nasdaq on behalf of BlackRock in August, seeks to list and trade options on the iShares Ethereum Trust. Options trading would provide investors with additional tools to manage risk and speculate on the price movements of Ethereum.
The SEC stated that it needs more time to thoroughly evaluate the proposed rule change and the issues it raises. "The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein," the agency said in its filing.
Concerns from Critics: Protecting Retail Investors
Two comment letters have been submitted in response to Nasdaq's proposal, one from Better Markets a nonprofit organization. This group has expressed concerns that adding options for Bitcoin and Ethereum ETFs could increase risks for retail investors. "Retail investors already lose billions of dollars trading options," wrote Benjamin Schiffrin, Better Markets' Director of Securities Policy. "Options on spot ether ETPs would only give sophisticated market participants another way to use options trading to take advantage of the retail investors to whom the options will inevitably be marketed."
Fidelity Joins the Fray: Another Options Proposal on the Table
Separately, the SEC also solicited public comments on Friday regarding a similar proposal from Cboe BZX Exchange Inc., on behalf of Fidelity, to list and trade options on its spot Ethereum ETF. The comment period for this proposal will run for 21 days after its publication in the Federal Register.