SEC Delays Decision on Crypto Options Trading
The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding options trading for BlackRock and Bitwise spot Ethereum exchange-traded funds (ETFs) until mid-November, as per the filings dated September 24.
New Deadlines for ETF Proposals
The revised deadlines for the two companies are as follows:
- BlackRock: November 10
- Bitwise: November 11
The SEC cited the need for further deliberation, extending the 45-day review period scheduled to conclude on September 26 for BlackRock’s iShares Ethereum Trust ETF. This ETF’s proposal was initially filed on July 22.
Impact on the Crypto ETF Market
A similar justification was made for Bitwise’s ETHW, with its decision also pushed to November 11, as its proposal was submitted one day later than BlackRock’s.
Significance of Options Trading for Crypto ETFs
On September 20, BlackRock’s iShares Bitcoin Trust (IBIT) obtained approval for options trading from the SEC, marking a significant milestone for Bitcoin ETFs.
Market Analysts Weigh In
Eric Balchunas, a senior ETF analyst at Bloomberg, described this approval as a “huge win” for Bitcoin, indicating that it will enhance liquidity and attract larger investors.
Matthew Sigel, head of digital assets research at VanEck, referred to a report from K33 Research on September 24, revealing that the Bitcoin derivatives market is significantly smaller—279 times less—than its equity and commodity equivalents.
Comparative Volumes in Options Trading
Between September 1 and September 22, the trading volume of Bitcoin options on major centralized crypto exchanges reached approximately $33.3 billion. In contrast, Ethereum’s options volume during the same period was only $9.2 billion, underscoring the potential for further growth in Ethereum ETFs if options trading gains traction.