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The United States Securities and Exchange Commission (SEC) has delayed several issuers' decisions to list Options on spot Ethereum ETF products. As spotlighted by ETF Store President Nate Geraci, the markets regulator pronounced the delay on Options targeted at Bitwise, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust and other trusts that want a related allowance.
Delay but not denial?
It is worth noting that, by law, the U.S. SEC can delay the approval of any ETF-related product for up to 240 days. At the end of this timeline, the regulator would likely have gathered enough reason to approve the product.
Alex DovbnyaAnalysts consider this delay in the approval of Options on Ethereum ETF a good one. While an outright denial might prove excessive, the delay might help reshape the regulator’s perspective, especially with the likelihood of SEC leadership change soon.
The ongoing delays might eventually translate to approval, granting investors an opportunity to hedge their bets on the respective ETF products. As part of the reasons for the delay, the markets regulator teased in its filing that it is considering the impact of preventing market manipulation.
Other concerns center around whether the Ethereum ETF Options will offer a fair trading system to participants under Section 6(b)(5) of the Act.
Ethereum ETF outlook
The approval of the spot Ethereum ETF product came as an unexpected twist amid uncertainties around its status as a security. However, with the approval, more institutional investors have had to embrace the asset fully. This adoption is showcased by the inflow scored by the product in the past few days.
Arman ShirinyanAccording to data from Farside Investors, the Ethereum ETF offering received $85.9 million in inflows on Nov. 8. This positive flow marked its third consecutive netflow, buoyed by the positive performance of the Fidelity Ethereum ETF product.
The sentiment for Ethereum is positive at the moment. With the coin changing hands for $3,046, up by 4.54% in 24 hours, any Options approval will help cement its long-term growth prospects.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya