The U.S. Securities and Exchange Commission (SEC) has delayed its decision on allowing options tied to spot Ethereum (ETH) exchange-traded funds (ETFs) to be listed on the NYSE American exchange.
If approved, NYSE could list options for several Ethereum-focused funds, including the Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and other trusts holding Ether.
SEC Approves Options Trading on Bitcoin ETFs
The move comes as part of a broader wave of crypto-related regulatory considerations, with the SEC recently approving options trading on 11 Bitcoin ETFs for NYSE American, Nasdaq, and Cboe Exchange. Those same exchanges have now petitioned for the listing of Ethereum ETF options. A final decision will also require approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). The SEC’s ongoing review signals a possible softening stance on cryptocurrency-related products, especially in the wake of pro-crypto Donald Trump’s November 5 reelection as U.S. President. Trump’s return to office has invigorated optimism among crypto advocates, with several proposed crypto ETFs now awaiting regulatory clearance. Asset managers have filed numerous applications in 2024 to list ETFs focused on altcoins like Solana (SOL), XRP, and Litecoin (LTC), as well as diversified crypto index ETFs. Jeff Park, head of alpha strategies at Bitwise Investments, described the introduction of spot Bitcoin options on regulated exchanges as a “monumental advancement” for cryptocurrency markets, promising new investment opportunities. However, the SEC’s decision-making process for Ethereum options remains cautious. The agency previously delayed a proposal to list options tied to several popular Ethereum ETFs, with the decision deadline now extended to December 3. In parallel, the SEC is reviewing Grayscale’s request to launch an ETF holding a diverse range of cryptocurrencies, marking another step toward greater integration of digital assets in mainstream finance.
SEC Leadership to Change Under Trump
As speculation is mounting within the cryptocurrency community about potential changes in the SEC leadership following election results, Mark Uyeda, a current SEC commissioner, is emerging as a strong contender to take the reins. The suggestion was put forward by crypto attorney Jake Chervinsky. Uyeda, who joined the SEC as a commissioner on June 30, 2022, has been a vocal critic of the current regulatory regime under SEC Chair Gary Gensler. Trump has already pledged to fire Gensler on his first day in office, fueling speculation about who might succeed him. While Commissioner Hester Peirce, often called “Crypto Mom” for her defense of crypto innovation, has been considered a potential candidate, Chervinsky believes her chances are slim. Peirce, appointed by Trump in January 2018, has frequently criticized the SEC’s restrictive policies and advocated for open communication with the industry. However, Chervinsky suggests that Peirce may not be interested in the challenging role of SEC chair. As of late, the SEC has been facing growing criticism due to its “regulation-by-enforcement” approach to the crypto industry. Critics argue that the SEC has failed to establish a clear regulatory framework for cryptocurrencies, opting instead to pursue legal action against key industry players.