Key Points
- The SEC has postponed its decisions on BlackRock and Bitwise Ethereum ETF options until November.
- Ethereum ETFs have experienced significant outflows amounting to $624.4 million, primarily driven by Grayscale’s Ether ETF.
The U.S. Securities and Exchange Commission (SEC) has pushed back its timeline for reviewing Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum [ETH] Trust (ETHA).
Delayed Decision on Ethereum ETFs
Originally due for a decision on September 26, the SEC has now delayed its ruling until November 10. On September 24, the SEC stated that the delay will allow for more time to assess the potential effect of this listing on market stability and provide a comprehensive review of its broader financial implications.
The SEC has the power to postpone its decision on proposals for up to 90 days under Section 19(b)(2) of the Securities Exchange Act. This delay gives the regulator more time to thoroughly assess potential market risks and stability before making a final decision.
Other Postponements and Approvals
In another development, the SEC has also pushed back its decision on NYSE American’s proposal to list and trade options for Bitwise’s spot Ethereum ETFs. This includes the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust, with the decision now due on November 11.
In contrast, the SEC recently approved Nasdaq’s request to list and trade options for BlackRock’s spot Bitcoin [BTC] ETF. On September 20, the SEC officially approved options trading for the iShares Bitcoin Trust, trading under the ticker symbol IBIT.
Ethereum ETF Performance
However, Ethereum ETFs have seen a significant outflow since their inception, with a total outflow of $624.4 million, largely due to Grayscale’s Ether ETF (ETHE). The outflows have been particularly significant in recent weeks, with the largest net outflow since July occurring on September 23, when $79 million was withdrawn. Grayscale’s ETHE led this decline, with a staggering single-day outflow of $80.6 million, the largest since spot Ether ETFs were introduced earlier this year. Despite occasional inflows, the overall trend remains heavy withdrawals from these funds.
