SEC again delays Ether ETF options on Cboe

The US Securities and Exchange Commission has once again extended its deadline for deciding whether or not 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 to approve or disapprove of Ether (ETH) ETF options trading on the US 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). The fund is among the more popular Ether ETFs, with around $1.3 billion in net assets, according to data from VettaFi. 

On Feb. 7, the SEC sent a similar response to another US 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). 

BlackRock’s fund is the largest ETH ETF, with more than $3.7 billion in net assets, VettaFi’s data shows.

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, according to VettaFi’s data. 

Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price.

Related: SEC seeks more time to mull options on Ethereum ETFs

More crypto derivatives

Investment managers expect the US 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. On the first day of listing, options contracts on BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw almost $2 billion in total exposure.

US President Donald Trump — who has promised to turn the US into the “world’s crypto capital” — is tapping crypto-friendly leaders to head financial regulators. This has raised hopes throughout the industry for speedy approvals for proposed crypto financial products.

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, a derivatives exchange, said it would launch SOL futures contracts on March 17, pending regulatory approval.

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