Ethereum ETF approval postponed by SEC
The SEC’s cautious stance reflects concerns over market manipulation and investor protection.
The United States Securities and Exchange Commission (SEC) has delayed its decision on approving options trading for spot Ethereum ETFs. The regulator stated the need for more time to assess the proposed rule changes for Nasdaq ISE LLC and NYSE American LLC to list Ethereum ETF options. BlackRock, Bitwise, and Grayscale are among those awaiting approval for their respective Ethereum funds, with a new decision deadline set for November 2024.
The SEC’s cautious approach towards crypto-related Exchange-Traded Products (ETPs) is clear, as it has extended the review process for Ethereum ETFs. This move comes as interest in Ethereum ETFs has declined, with significant outflows exceeding $620 million in recent weeks. By contrast, Bitcoin ETFs have enjoyed strong inflows, with over $17 billion invested since their launch.
Meanwhile, the SEC recently approved options trading for BlackRock’s Bitcoin ETF after a lengthy review process. This approval, along with BlackRock’s updates on Bitcoin ETF withdrawals, underscores the ongoing regulatory scrutiny in the crypto sector, as the SEC addresses concerns over market manipulation and protection for investors.
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