SEC Delays Ether ETF Options Decision Until May

The U.S. Securities and Exchange Commission (SEC) has once again extended its deadline for deciding whether to permit Cboe Exchange to list options tied to Ether exchange-traded funds (ETFs). The agency has given itself until May to make a final decision on approving or disapproving Ether (ETH) ETF options trading on the U.S. exchange, according to a Feb. 28 regulatory filing.

Cboe initially requested to list Ether ETF options in August 2024, but the SEC sought extra time to reach a decision in October. The exchange is seeking to list options on the Fidelity Ethereum Fund (FETH), which is among the more popular Ether ETFs, with around $1.3 billion in net assets.

On Feb. 7, the SEC sent a similar response to another U.S. securities exchange, Nasdaq ISE. The agency intends to decide by April if the exchange can list options tied to BlackRock’s iShares Ethereum Trust (ETHA), which is the largest ETH ETF with more than $3.7 billion in net assets.

Creating an options market for ETH ETFs is an important step toward widespread adoption. Spot Ether ETFs were listed in July 2024 and have proceeded to attract approximately $11 billion in net assets. Options are contracts granting the right to buy or sell an underlying asset at a certain price.

Investment managers expect the U.S. expansion of cryptocurrency ETF options to accelerate institutional adoption and potentially unlock “extraordinary upside” for investors. Options on spot Bitcoin (BTC) ETFs started trading in November, with almost $2 billion in total exposure on the first day of listing.

On Feb. 19, Coinbase launched Solana (SOL) futures, another type of derivatives contract representing an agreement to buy or sell an asset at a future date. On Feb. 28, the Chicago Mercantile Exchange (CME) Group said it would launch SOL futures contracts on March 17, pending regulatory approval.