reporter
Posted:
- SEC Delays Decision on BlackRock and Bitwise Ethereum ETF Options Until November
- Ethereum ETFs are facing $624.4 million in outflows, led by Grayscale’s Ether ETF.
The U.S. Securities and Exchange Commission (SEC) has extended the period for reviewing Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum (ETH) Trust (ETHA).
ETHA on Blackrocks is delayed
The SEC originally scheduled a decision by September 26, but has now delayed it until November 10.
In a statement released on September 24, the agency explained that the delay would give it additional time to assess the potential impact the listing could have on market stability and thoroughly review its impact on the broader financial environment.
The press release added:
“The Commission believes it is appropriate to provide a longer period of time to take action on the proposed rule change to allow sufficient time to consider the proposed rule change.”
What’s behind this?
Under Section 19(b)(2) of the Securities Exchange Act, the SEC has the authority to delay its decision on a proposal for up to 90 days.
This extension provides regulators with additional time to thoroughly assess potential market risks and stability before making a final ruling.
This will allow the SEC to comprehensively review the full impact that its decision may have on the broader financial environment.
In a separate incident, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on NYSE American’s proposal to list and trade options on Bitwise’s spot Ethereum ETFs, including the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust.
The deadline for this decision has been extended to November 11.
Blackrock’s IBIT gets recognition
In a seemingly contrasting move, the SEC recently approved Nasdaq’s request to list and trade options on BlackRock’s spot Bitcoin (BTC) ETF.
On September 20, the SEC (United States Securities and Exchange Commission) officially approved options trading on the iShares Bitcoin Trust, which will trade under the ticker symbol IBIT.
According to Nasdaq, these options will trade under the same terms and conditions as other ETF options, further expanding the investment opportunities surrounding Bitcoin.
Is Ethereum ETF Performance a Problem?
That said, Ethereum ETFs have experienced significant outflows since their launch, led primarily by Grayscale’s Ether ETF (ETHE), which has seen cumulative outflows of $624.4 million.
Outflows have been particularly pronounced in recent weeks, with $79 million withdrawn on September 23, the largest net outflow since July.
Grayscale’s ETHE was the biggest loser, losing a whopping $80.6 million in a single day — the largest single-day loss since a spot Ether ETF launched earlier this year.
Although there are occasional inflows, the overall trend is still that there are significant withdrawals from these funds.