SEC extends review of proposed Ethereum ETF options
According to an Oct. 11 notice, the Securities and Exchange Commission has extended the review period for proposed rule changes that would allow options trading on Ethereum exchange-traded funds.
The original 45-day review period was scheduled to expire on Oct. 19, but the SEC designated a new deadline of Dec. 3, according to the filing.
The proposal, filed by Cboe Exchange on August 19, seeks to amend exchange Rule 4.3 to allow the listing and trading of equity options on nine Ethereum ETFs, including products from Fidelity, Grayscale, and BlackRock’s iShares. stated in the SEC filing.
“We have determined that specifying a longer period is appropriate to allow sufficient time to consider the proposed rule changes,” the SEC said in the notice.
Ethereum ETF options
If approved, the rule change would allow options trading on ETFs tracking Ether, the native token of the Ethereum smart contract blockchain and the second-largest digital asset by market value. Last month, the SEC approved options trading for BlackRock’s iShares Spot Bitcoin ETF.
An option is a financial contract that provides an investor with the right to buy or sell an asset at a predetermined price.
Ether has recently been trading around $2,600, according to crypto market data provider CoinMarketCap. It has risen about 6% in the past 24 hours as part of a broader rally in cryptocurrencies that began during Asian trading hours.
Read more: SEC Greenlights Options on BlackRock’s IBIT
The Spot Ethereum ETF has attracted a wide range of investor interest since its debut in July, with nearly $550 million in assets outflows, according to data from UK-based asset management firm Farside Investors. It is said that he did. This number is skewed by more than $2.9 billion in net outflows from the Grayscale Ethereum Trust (ETHE), which is a closed fund conversion and has one of the highest fees at 2.5%. This is different from emerging products. .
iShares Ethereum Trust (ETHA) generated the most net inflows of any fund at approximately $1.2 billion, while Fidelity Ethereum Fund (FETH) received approximately $450 million in net inflows.
The Bitwise Ethereum ETF (ETHW) and VanEck Ethereum ETF (ETHV) also saw positive inflows of $318 million and $68.9 million, respectively, according to Farside.
ETHA 1 month fund flow
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