- SEC postpones decision on Cboe Ethereum ETF options until December.
- Bitcoin ETFs are soaring, while Ethereum funds are experiencing negative flows.
The SEC announced Friday that it will extend its review of Cboe's proposal to allow options trading on Ethereum-based exchange traded funds (ETFs).
A decision was originally scheduled to be made by October 19, but the deadline was postponed to December 3 to allow additional time for evaluation.
Cboe's proposal, submitted in August, would allow options trading on Ethereum ETFs from major companies such as Fidelity, Invesco, and Grayscale.
The move follows the SEC's approval of 11 Bitcoin ETFs in January and eight Ethereum ETFs in May 2024.
Although the Ethereum ETF has reached a regulatory milestone, it has underperformed compared to the Bitcoin ETF, with negative flows of $546 million since its launch.
In contrast, Bitcoin ETFs saw over $12 billion in inflows in the first quarter.
The delay comes just weeks after the SEC approved options trading on Nasdaq's BlackRock's iShares Bitcoin Trust (IBIT).
Unlike owning stocks, options allow traders to leverage positions, making them attractive to those looking to increase exposure with little capital.
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Bloomberg Intelligence analyst James Seifert predicts that Bitcoin ETF options could begin trading before the end of the year, but “more likely in the first quarter of 2025.” .
Virtual currency market movements
- Bitcoin rose 3.4% in the past 24 hours to around $62,700.
- Ethereum rose 1.8% to $2,444.
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Kyle Baird is DL News” Weekend editor. Any tips? email address: kbaird@dlnews.com.
