SEC Postpones Approval Decision for Spot Ethereum ETF Options

The U.S. SEC has announced a postponement in its decision on whether to approve spot Ethereum ETF options.
The Securities and Exchange Commission
stated
that more time is required to evaluate whether the proposed ETF options aligns with existing securities laws, though it didn’t specify when a decision might be made.
The regulatory body highlighted that the delay is intended to ensure the proposal complies with requirements aimed at preventing fraud, supporting fair trading practices, maintaining a free and open market, and safeguarding investor interests.
Recently, the SEC approved Bitcoin (
BTC
) ETF options for the New York Stock Exchange (NYSE) and Chicago Board Options Exchange (CBOE), referencing the successful listing of options on the iShares Bitcoin Trust (IBIT) by Nasdaq.
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Jeff Park of Bitwise highlighted that these Bitcoin ETF options bring regulated leverage to a supply-limited asset, marking a first in the financial landscape. Park remarked that the introduction of regulated options could lead to significant volatility, potentially pushing regulated markets to shut down temporarily if things get too intense. However, he noted that, unlike other assets, Bitcoin has decentralized markets that remain operational and unrestrained.