SEC Delays Decision on BlackRock’s Ethereum ETF Options Trading

The U.S. Securities and Exchange Commission (SEC) postponed its decision regarding BlackRock’s proposal to list and trade options on its spot Ethereum exchange-traded fund (ETF) until April 9, 2025.

In their filing, the SEC stated, “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.”

BlackRock’s spot Ethereum ETF received approval along with eight others in May, subsequently beginning to trade over the summer. This August, Nasdaq filed a rule change to list and trade options for the iShares Ethereum Trust on behalf of BlackRock.

Two letters were submitted in response to Nasdaq’s proposal. One from Better Markets urged the SEC to approach options trading on both spot bitcoin and spot Ethereum ETFs with caution due to their volatility. Better Markets is a nonpartisan nonprofit focused on creating a robust financial system and has voiced concerns about cryptocurrency.

Benjamin Schiffrin, Director of Securities Policy at Better Markets, wrote, “Retail investors already lose billions of dollars trading options. 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.”

On the same day, the SEC requested public comments regarding a proposal from Cboe BZX Exchange Inc., representing Fidelity, to list and trade options on its spot Ethereum ETF. Comments are due 21 days after publication in the Federal Register.