Ethereum spot ETF options application faces setback, SEC delays decision to November

The U.S. Securities and Exchange Commission (SEC) recently approved a Bitcoin spot ETF options listing application. Although it still requires approval from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC), many analysts are already excited about the huge potential of the digital asset derivatives market. The head of asset management company VanEck pointed out that just the largest cryptocurrency by market value, Bitcoin, has a potential in its derivatives market that is 279 times that of traditional finance. However, Ethereum is not having such a smooth ride; the SEC's document indicates that they will delay the listing application for Ethereum spot ETF options until November.

Bitcoin Derivatives Market Potential Much Greater? VanEck Executive: 279 Times that of Traditional Finance

BlackRock and Bitwise ETF Applications Delayed to November

According to the document released by the SEC on September 24, BlackRock and Bitwise's applications for Ethereum spot ETF options have been postponed to mid-November. The SEC stated that it needs more time to consider the proposal, thus extending BlackRock's initial 45-day review period.

Initially, Nasdaq submitted BlackRock's iShares Ethereum spot ETF options listing application on July 22, with the original review deadline set for September 26, now extended to November 10. Bitwise's ETHW application, submitted a day after BlackRock, has also been delayed to November 11.

Ethereum Options Market Has Three Times Growth Potential Compared to Bitcoin

According to data from The Block, the Ethereum options trading volume on major centralized cryptocurrency exchanges in September was $10.46 billion. During the same period, Bitcoin options trading volume was around $33.9 billion, three times that of Ethereum. With the SEC adding digital assets to the options trading arena, there may still be significant speculative room for Ethereum spot ETF options.

From a positive perspective, including Bitcoin and even Ethereum spot ETFs in options trading is beneficial for the maturity of the cryptocurrency market. Institutions can hedge risks through options trading and increase their willingness to include digital assets in their investment choices.

Furthermore, observing the SEC's attitude towards such digital asset derivatives may have implications for other countries. Although countries like Canada have Bitcoin spot ETFs, they remain conservative towards options and other derivatives. Therefore, users tend to use centralized exchanges like Deribit, OKX, and Binance for digital asset options trading. If the U.S. officially lists such products, it may drive other countries to list digital asset options products as well.