SEC Delays Decision on Nasdaq’s Spot Ethereum ETF Listing to November 10

• The U.S. Securities and Exchange Commission has deferred its decision on Nasdaq’s rule amendment aimed at approving the listing and trading of options on BlackRock and Bitwise’s spot Ethereum (ETH) exchange-traded funds (ETFs).
• This postponement was announced on Tuesday, pushing the decision to November 10th.
• “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC mentioned.

The SEC delays its verdict on allowing Nasdaq to list options on BlackRock’s and Bitwise’s spot Ethereum ETFs until November, highlighting the need for more comprehensive review.

SEC’s Postponement of Ethereum ETF Options Decision

Initially scheduled for this Thursday, the SEC’s decision regarding Nasdaq’s proposed rule change has now been deferred to November 10th. This delay is seen as part of the Commission’s effort to ensure a thorough review of the proposal. The proposed rule change, if approved, could significantly influence the availability and trading of Ethereum ETFs in traditional markets.

Additional Postponements on NYSE American’s Proposal

In a separate release, the SEC also announced a delay in its decision on NYSE American’s proposal to list and trade options on Bitwise’s spot Ethereum ETFs, Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. The new decision date is set for November 11th. These delays indicate the SEC’s cautious approach in evaluating the viability and impact of these financial products.

Proposal for Accessibility in Ethereum ETFs

The Nasdaq International Securities Exchange filed the IBIT options listing proposal on August 6th with an aim to simplify access to Ethereum ETFs for both retail and institutional investors. According to Nasdaq ISE, the designed shares are intended to reduce the complexities associated with direct investment in ether while reflecting investment exposure accurately.

Implications of the Decision Delay

The SEC’s decision to postpone comes after it recently approved the listing and trading of options on BlackRock’s iShares Bitcoin Trust (IBIT), marking a notable development for bitcoin ETFs. Bloomberg’s senior ETF analyst, Eric Balchunas, referred to this approval as a “huge win” for bitcoin ETFs, hinting at the significance similar decisions could have for Ethereum ETFs.

Current Market Position of Ethereum ETFs

Data from SoSoValue highlights that BlackRock’s ETHA fund held net assets worth approximately $977 million as of Wednesday. Despite this, the nine spot Ethereum ETFs have seen a combined outflow exceeding $624 million since their launch on July 23rd, raising questions about market sentiment towards these funds.

Conclusion

The SEC’s postponement of its decision on the listing and trading of options for Ethereum ETFs underscores the complexity and caution exercised in regulatory reviews. As the new deadlines approach in November, stakeholders will keenly observe how these decisions might shape the future landscape of cryptocurrency ETFs and their acceptance in traditional financial markets.