SEC's Never-Ending Game of Ether ETF Hide and Seek! 😅

Ah, the US Securities and Exchange Commission, or as I like to call them, the masters of suspense! They’ve decided to extend their deadline yet again for the oh-so-urgent matter of whether Cboe Exchange can list options tied to Ether exchange-traded funds (ETFs). Because, you know, why rush into things when you can keep everyone on the edge of their seats until May? 🎭

According to a regulatory filing from February 28, the agency has given itself a little more time to ponder the mysteries of Ether (ETH) ETF options trading. Cboe, bless their hearts, initially asked to list these options back in August 2024, but the SEC, in a fit of bureaucratic brilliance, decided they needed more time to think about it in October. Who knew decision-making could be so exhausting? 😴

Now, Cboe is particularly keen on listing options for the Fidelity Ethereum Fund (FETH), which, by the way, is not just any fund; it boasts a whopping $1.3 billion in net assets. That’s a lot of zeros! 💰

In a similar twist of fate, on February 7, the SEC sent a note to Nasdaq ISE, saying they’d also be deciding by April whether to allow options tied to BlackRock’s iShares Ethereum Trust (ETHA). BlackRock, the heavyweight champion of ETH ETFs, is sitting pretty with over $3.7 billion in net assets. Talk about a financial heavyweight! 🥊

Now, creating an options market for ETH ETFs is like trying to get a cat to take a bath—important but fraught with challenges. Spot Ether ETFs made their grand debut in July 2024 and have since attracted around $11 billion in net assets. That’s a lot of catnip! 🐱

For those not in the know, options are contracts that give you the right to buy or sell—“call” or “put,” if you want to sound fancy—an underlying asset at a certain price. It’s like having a coupon for a pizza, but instead of pizza, it’s Ether. 🍕

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Investment managers are rubbing their hands together in glee, expecting that the US expansion of cryptocurrency ETF options will accelerate institutional adoption and potentially unlock “extraordinary upside” for investors. Because who doesn’t want a little extra upside? 🎢

Options on spot Bitcoin (BTC) ETFs started trading in November, and on the very first day, options contracts on BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw nearly $2 billion in total exposure. That’s a lot of dough! 🍞

Meanwhile, US President Donald Trump, who has grand plans to turn the US into the “world’s crypto capital,” is appointing crypto-friendly leaders to head financial regulators. This has everyone in the industry crossing their fingers for speedy approvals of proposed crypto financial products. It’s like waiting for a bus that’s always late! 🚌

On February 19, Coinbase decided to join the party by launching Solana (SOL) futures, another type of derivatives contract that’s basically a promise to buy or sell an asset at a future date. Because who doesn’t love a good promise? 🤞

And just to keep the excitement rolling, on February 28, the Chicago Mercantile Exchange (CME) Group announced they would launch SOL futures contracts on March 17, pending regulatory approval. So, mark your calendars, folks! 🗓️

2025-02-28 21:54

SEC’s Never-Ending Game of Ether ETF Hide and Seek! 😅

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