- The SEC delayed its decision on Cboe’s Ether ETF options listing until May 2025 for further review.
- Approval of Ether ETF options could boost market liquidity and increase investor flexibility.
- The SEC will decide on BlackRock’s ETH ETF options by April before ruling on Cboe’s application.
The U.S. Securities and Exchange Commission has extended its deadline to decide on Cboe Exchange’s request for Ethereum exchange-traded funds options listing. According to a regulatory filing, the SEC has until May 2, 2025, to either approve or reject the proposal.
Cboe initially submitted its request in August 2024, seeking approval to list options on the Fidelity Ethereum Fund (FETH). In October, the SEC extended its review period. The latest delay aligns with the regulator’s authority to take up to 240 days to finalize decisions on such applications.
A similar decision is expected in April regarding options tied to BlackRock’s iShares Ethereum Trust (ETHA), the largest ETH ETF with over $3.7 billion in net assets.
Market Impact and Stakeholder Interests
The proposed options market for Ethereum ETFs has drawn significant interest from investors. Options trading could increase market liquidity and offer more flexibility to traders if it is approved. Currently, FETH is among the most popular Ethereum ETFs, managing around $1.3 billion in net assets. The introduction of options trading on these funds would mark a critical expansion in Ethereum-related financial products.
The SEC has also been reviewing public comments on the proposal. Feedback was collected until January 21, 2025. Industry stakeholders believe that approval could support wider adoption of Ethereum ETFs.
Market participants are also watching regulatory developments on Ethereum staking within ETFs. Recently, the SEC acknowledged a filing from Cboe requesting approval for staking features in the 21Shares Core Ethereum ETF (CETH).
Future Outlook for Ethereum ETFs
The SEC’s decision on Cboe’s application will come after its ruling on Nasdaq ISE’s request to list options for ETHA. That decision is expected by April 9, 2025. The SEC’s approach suggests a cautious but evolving stance toward Ethereum ETF products.
The market remains optimistic about the eventual approval of options trading for Ethereum ETFs. Spot Ethereum ETFs, introduced in July 2024, have already attracted approximately $11 billion in net assets. Regulatory improvements could further expand the market’s offerings and accessibility.
