SEC Seeks Public Opinion on Ethereum Options Trading

The U.S. Securities and Exchange Commission (SEC) has taken a significant step that could potentially reverse the recent slump in Ethereum (ETH) prices. After approving spot ETH exchange-traded funds (ETFs) a year ago, the SEC is now seeking public opinion on a proposed rule change that would facilitate options trading on these platforms. This move could have a positive impact on ETH pricing, as it would give investors more freedom to decide the outcome.

Since the SEC approved spot ETF trading for Bitcoin (BTC) in January 2024, options for BTC-linked ETFs have been approved. In a recent filing, the CBOE exchange commented that Ethereum Funds are similar to Bitcoin Funds, except that they hold ETH instead of BTC, which is already eligible for options trading on the exchange. This suggests that the SEC is considering a similar approach for ETH.

ETH-linked spot ETFs, launched in July 2024, have attracted around $10 billion in inflows, indicating a growing interest in the asset. However, ETH has been one of the worst-performing cryptocurrencies in the market, currently standing at an 18% loss. This slump can be attributed to macroeconomic developments, such as the trade war, which have put investors on edge and lowered the fear/greed index. Additionally, competitors like SOL, SUI, Cardano, and TRON offer better alternatives for scaling, leading many developers to choose these platforms over ETH.

The SEC's decision to involve the public in the discussion about ETH could serve as a positive catalyst, potentially turning the coin's slump into an uptrend. As the SEC seeks public opinion, investors and traders will have a greater say in the outcome, which could positively impact ETH pricing. The market will now wait and watch as the SEC's decision unfolds.