SEC Decides to Keep Us in Suspense: Spot Ethereum ETF Options Postponed Ahead of November 11 Deadline

Table of Contents

The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on approving options trading linked to Ethereum (ETH) spot exchange-traded funds (ETFs) on the NYSE American.

Approval of this would allow the NYSE to list options for several Ethereum-focused funds, including the Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and other Ether-holding trusts.

SEC’s Nod to Bitcoin ETF Options

This delay is part of broader regulatory developments in the crypto world. Recently, the SEC greenlit options trading for 11 Bitcoin ETFs on NYSE American, Nasdaq, and Cboe Exchange.

These same exchanges have now applied for Ethereum ETF options listings, but final approval will also require the blessing of the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).

The SEC’s ongoing review hints at a potential shift in its approach to crypto products, especially with Donald Trump—famously pro-crypto—returning as U.S. President on November 5.

Trump’s White House comeback has sparked fresh optimism among crypto enthusiasts, with several proposed crypto ETFs now awaiting regulatory approval.

A Busy Year for ETF Proposals

In 2024, asset managers have filed numerous applications for ETFs focused on altcoins like Solana (SOL), XRP, and Litecoin (LTC). These include diversified crypto index ETFs, signaling an expansion in the types of crypto assets seeking mainstream recognition.

Jeff Park, Head of Alpha Strategy at Bitwise Investments, called the introduction of spot Bitcoin options on regulated exchanges a “giant leap” for the crypto market, opening doors to new investment opportunities.

Ethereum ETF Waiting Game

Yet, when it comes to Ethereum, the SEC is still treading carefully. It has previously delayed proposals for listing options linked to popular Ethereum ETFs, extending the latest decision deadline to December 3.

Meanwhile, the SEC is also reviewing Grayscale’s application to launch an ETF holding various cryptocurrencies, indicating further steps toward integrating digital assets into mainstream finance.

It’s clear the SEC is dragging its feet, but with crypto optimism on the rise and regulatory momentum building, the world of crypto ETFs is set for an interesting end to 2024—whether the SEC likes it or not. 🚀

Changing of the Guard at the SEC: Will Trump Shake Things Up?

Speculation is running wild in the crypto community about potential leadership changes at the SEC following the election results. Current SEC Commissioner Mark Uyeda is being floated as a strong contender to replace the much-debated Chair, Gary Gensler.

Crypto lawyer Jake Chervinsky stirred the pot, pointing to Uyeda’s history since joining the SEC on June 30, 2022. Uyeda has consistently criticized Gensler’s regulatory approach, making him a prime candidate for a shake-up under Trump’s administration.

Trump himself has promised to give Gensler the boot on Day 1 of his presidency, fueling the gossip mill on who might step into the top spot. While “Crypto Mom” Hester Peirce—long a favorite for her crypto-friendly stance—seems like a logical choice, Chervinsky thinks her chances are slim.

Peirce, appointed by Trump in January 2018, has been vocal about her disapproval of the SEC’s tough policies and has advocated for more open dialogue with the industry. But according to Chervinsky, Peirce might not want the headache that comes with the SEC’s top job.

The SEC has come under fire for its “regulation by enforcement” approach to crypto, leaving critics to argue that it has failed to establish clear rules for the industry. Instead, it has focused on legal battles with key players, leaving the crypto world frustrated and regulators looking a bit like they’re playing Whack-a-Mole.

So, will Uyeda step in to rewrite the rules—or will the SEC keep playing its old tune? One thing’s for sure: Trump’s presidency could make the SEC the hottest ticket in crypto regulation drama. 🍿

What is Ethereum Classic, price predictions 2024 – 2030 and why to invest in ETC

Author
Recent Posts

Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.