SEC Extends Ethereum ETF Options Review to 2025

The U.S. Securities and Exchange Commission (SEC) has extended the review period for approving options trading for Ethereum exchange-traded funds (ETFs) until April 9, 2025. This extension, the third of its kind, comes as the agency seeks more time to assess the potential market impact and gather public input on the proposed rule change.

The SEC's decision affects applications from several major firms, including Bitwise, Grayscale, Ethereum Mini Trust, and BlackRock. The regulator emphasized that the extension allows for a more comprehensive review before making a final decision.

This development follows the SEC's earlier request for public comments on a proposal by Cboe BZX Exchange Inc., submitted on behalf of Fidelity. The proposal seeks approval to list and trade options tied to Fidelity's spot Ethereum ETF.

Options contracts provide traders with the right—but not the obligation—to buy or sell an asset at a specific price within a set timeframe. These financial instruments play a crucial role in risk management and price speculation. Analysts believe that the introduction of Ethereum ETF options could accelerate institutional adoption and enhance market efficiency.

Meanwhile, Bloomberg ETF analyst Eric Balchunas has suggested that while approval seems likely, the delay may be linked to ongoing leadership changes at the SEC. Former Commissioner Paul Atkins, nominated by Donald Trump to replace Gary Gensler, is awaiting Senate confirmation. His appointment is widely viewed as a potential shift toward a more crypto-friendly regulatory approach.

Despite ongoing uncertainty, demand for spot Ethereum ETFs continues to grow. Data from SoSo Value indicates that these funds have experienced five consecutive days of net inflows, pushing total investments beyond $3 billion since their introduction.