The U.S. Securities and Exchange Commission (SEC) has announced a postponement of its decision regarding the proposed listing of options for BlackRock’s iShares Ethereum Trust on the Nasdaq ISE. The new deadline for the decision has been set for November 10, 2024, extending the timeline originally due by September 26. This delay grants the SEC more time to review the proposal, which could create new opportunities in the Ethereum options market.
Background on the Delay
The proposed rule change involves Nasdaq ISE LLC seeking SEC approval to amend its listing rules to permit trading options on BlackRock’s Ethereum trust. The SEC has indicated that the extension is necessary to thoroughly evaluate the proposed changes, aligning with its regulatory approach toward launching financial products such as options and derivatives related to cryptocurrencies.
Recent SEC Actions
This postponement follows the SEC’s recent approval of options for BlackRock’s Bitcoin ETF, granted on September 20. The agency allowed Nasdaq to list and trade options on the iShares Bitcoin Trust under the ticker symbol IBIT, reflecting a gradual shift toward accepting various cryptocurrency-related financial products.
Market Trends and Outflows
As the SEC deliberates on the BlackRock Ethereum ETF options, the broader Ethereum ETF market is experiencing notable challenges. Recent data shows a substantial outflow of $79 million from spot Ethereum ETFs, marking the highest outflow since their inception in July. Among these, Grayscale’s ETHE has seen significant selling pressure, with outflows exceeding $80 million, according to reports from CoinGape.
Despite an uptick in interest surrounding cryptocurrency investment products, Ethereum ETFs have struggled to maintain consistent investor engagement, particularly when compared to the recent enthusiasm for Bitcoin ETFs. However, if the SEC ultimately approves the proposed options for BlackRock’s Ethereum ETF, it could potentially reinvigorate interest in Ethereum-related financial products.
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