The US Securities and Exchange Commission (SEC) has postponed its determination on Bitcoin Exchange-Traded Fund (ETF) option trades and is predicted to refuse proposals for Ethereum ETFs. This occurrence underscores the agency’s conservative stance toward cryptocurrency-related offerings within the financial sector.
The call to delay has been made in a recent announcement, where the SEC has shown a need for further public commentary. Members of the industry and observers now have a 21-day window to submit their views, with follow-up responses required within 35 days. The regulatory body is specifically interested in examining whether Bitcoin ETF options should comply with the same regulatory structure as standard stock options.
The proposal for consideration was put forth by leading exchanges such as the Cboe Exchange and Nasdaq ISE. It signifies a pivotal moment in the regulatory landscape of cryptocurrency options. It’s worth noting that this comes after the SEC’s green light to 11 Bitcoin ETFs back in January, which has since amassed a total investment inflow of $12.38 billion.
Simultaneously, the viewpoint for Ethereum ETFs looks less favorable. Discouraging discussions with the SEC have led industry insiders to expect rejection of the applications still in the pipeline. The SEC’s reluctance is likely linked to the need for a more extensive overview of the Ethereum market, which is less studied compared to Bitcoin. Potential refusal of Ethereum ETFs can result in obstructing the cryptocurrency’s general acknowledgment as a mainstream financial asset and possibly instigate legal confrontations paralleling those that impacted Bitcoin ETF approvals.