- SEC postpones ruling on Ethereum Spot ETF options until December 3, 2024.
- Institutional interest in crypto derivatives is growing, and advisors are increasingly using options in their portfolios.
- The Bitcoin Spot ETF saw significant net inflows of $253.6 million, while the Ethereum ETF saw modest outflows.
The wait for Ethereum Spot ETF options continues as the U.S. Securities and Exchange Commission (SEC) has postponed its ruling on proposed rule changes, according to an October 11 filing. The decision was expected by October 19, but has now been postponed to December. 3. This represents another example of the SEC deferring a decision regarding options related to Ethereum Spot-Traded Funds (ETFs).
SEC delays decision on Ethereum ETF options
The SEC's latest filings revealed that the commission has once again reversed its decision on whether to allow multiple Spot Ether ETF options to be listed on the Cboе exchange. The proposal aimed to list options related to several popular Ethereum ETFs, including industry giants such as BlackRock's iShares Ethereum Trust ETF and Grayscale Ethereum Trust. This postponement decision follows a similar postponement in September when Nasdaq's request to post an options list for the iShares Ethereum Trust was also postponed.
These delays are not isolated. In September, the SEC granted Nasdaq permission to list options related to BlackRock's Bitcoin ETF, iShares Bitcoin Trust (IBIT). However, final approvals from the Commodity Futures Trading Commission (CFTC) and Options Clearing Corporation (OCC) are still pending, with full launch expected in the first quarter of 2025.
Bloomberg Intelligence analyst James Seifert said Bitcoin ETF options could launch by the end of 2024, but Q1 2025 is a more realistic timeline. “I think the options are until the end of the year, but more likely the first quarter of 2025,” Seifert said on Oct. 9.
Institutional interest in cryptocurrencies grows
The potential of crypto options has attracted the attention of traditional financial players. Financial advisors who manage a significant portion of the $9 trillion ETF market are increasingly relying on options to protect their portfolios. A 2023 study conducted by the Journal of Financial Planning showed that more than 10% of financial advisors actively utilize options in their clients' portfolios.
This trend, coupled with increased inflows to Bitcoin spot ETFs, signals a growing appetite among institutional investors for regulated crypto derivatives. On October 11th, the Bitcoin Spot ETF recorded net inflows of $253.6 million, while the Ether Spot ETF had a modest net outflow of $100,000.
Spotonchain data shows a significant netflow recovery on the last trading day of the week after three consecutive days of outflows. Total net flows for Bitcoin ETFs were positive this week at $348.7 million, with inflows occurring on two of the five trading days.
BlackRock's iShares Bitcoin Trust (IBIT) emerged as the top weekly inflow, attracting $140.7 million worth of funds and adding a net 2,229 BTC to its holdings. Cumulative net inflows into IBIT now stand at a staggering $18.84 billion after 190 days of trading.
In contrast, the Ethereum ETF has faced a tough week, with just $1.9 million in inflows over the past five trading days. Cumulative net inflows into the Ethereum ETF after 58 trading days amount to -$551 million.
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