The U.S. Securities and Exchange Commission (SEC) has recently announced a delay in its decision-making process regarding Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum Trust (ETHA). Originally scheduled for a decision by September 26, the SEC has now pushed the ruling date to November 10, allowing more time for a thorough evaluation.
According to a statement released by the SEC on September 24, the extension aims to assess the potential impact of listing ETHA on market stability and conduct a comprehensive review of its implications for the broader financial landscape. The regulatory agency cited Section 19(b)(2) of the Securities Exchange Act, which grants the authority to delay decisions for up to 90 days to ensure a meticulous evaluation of market risks.
In a similar move, the SEC has also postponed its decision on NYSE American’s proposal to list and trade options for Bitwise’s spot Ethereum ETFs, including Grayscale’s Ethereum Trust and Ethereum Mini Trust, to November 11. However, in a contrasting decision, the SEC has approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin ETF, known as IBIT, on September 20.
Despite the approval for Bitcoin ETF options, Ethereum ETFs have been experiencing significant outflows, amounting to $624.4 million since their launch. The majority of these outflows have been attributed to Grayscale’s Ether ETF (ETHE), with a notable $80.6 million outflow in a single day, marking the largest since the inception of spot Ether ETFs earlier this year. The trend of heavy withdrawals from these funds persists, with occasional inflows failing to offset the overall outflow.
In conclusion, the SEC’s decision to delay the ruling on Ethereum ETF options reflects the need for a comprehensive evaluation of market risks and implications. While Bitcoin ETF options have been approved, the outflows from Ethereum ETFs highlight investor sentiment towards these investment products. Stay tuned for further updates on the evolving landscape of cryptocurrency ETFs.