Key Points
- The SEC has postponed its decisions on BlackRock and Bitwise Ethereum ETF options until November.
- Ethereum ETFs have experienced $624.4 million in outflows, primarily driven by Grayscale’s Ether ETF.
The U.S. Securities and Exchange Commission (SEC) has delayed its review of Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum (ETH) Trust (ETHA).
Delay in Decision
The decision, originally scheduled for 26th September, has been pushed back to 10th November. The delay will allow the SEC more time to assess the potential impact of the listing on market stability and perform a comprehensive review of its implications for the broader financial landscape.
The SEC stated that it finds it appropriate to designate a longer period within which to take action on the proposed rule change. This is so that it has sufficient time to consider the proposed rule change.
Regulatory Extension
Under Section 19(b)(2) of the Securities Exchange Act, the SEC has the legal authority to delay its decision on proposals for up to 90 days. This extension will provide the regulator with additional time to thoroughly assess potential market risks and stability before making a final ruling.
In a separate development, the U.S. SEC has also deferred its decision on NYSE American’s proposal to list and trade options for Bitwise’s spot Ethereum ETFs, including the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust. The deadline for this decision has been pushed to 11th November.
Bitcoin ETF Approval
Contrary to the Ethereum ETF delay, the SEC recently approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin (BTC) ETF. On the 20th of September, the SEC officially greenlit options trading for the iShares Bitcoin Trust, which will trade under the ticker symbol IBIT.
According to Nasdaq, these options will be available for trading under the same conditions and regulations as other ETF options, further expanding the investment opportunities surrounding Bitcoin.
Ethereum ETF Performance
However, Ethereum ETFs have seen a significant outflow since their launch, with a cumulative outflow of $624.4 million, primarily driven by Grayscale’s Ether ETF (ETHE). The 23rd of September marked the largest net outflow since July, with $79 million being withdrawn.
Grayscale’s ETHE led this decline, with a staggering $80.6 million outflow in a single day, the largest since spot Ether ETFs debuted earlier this year. Despite occasional inflows, the overall trend remains one of heavy withdrawals from these funds.