SEC postpones ruling on Fidelity Ether ETF options

The US Securities and Exchange Commission has postponed ruling connected whether oregon not to licence Cboe BZX Exchange to database options tied to plus manager Fidelity’s Ether (ETH) exchange-traded money (ETFs). 

The bureau has fixed itself until May 14 to o.k. oregon disapprove of Cboe BZX’s petition to database options tied to Fidelity Ethereum Fund (FETH), according to a March 12 SEC filing. 

Cboe BZX initially requested to database options connected Fidelity’s Ether ETFs successful January, the filing said. 

Listing options connected Ether funds is an important measurement successful attracting organization superior to the cryptocurrency.

Ether ETFs by nett assets. Source: VettaFi

Related: SEC acknowledges slew of crypto ETF filings arsenic reviews, approvals accelerate

Flurry of filings

In February, the SEC acknowledged much than a twelve speech filings related to cryptocurrency ETFs, according to records.

The SEC’s acknowledgments item however the bureau has softened its stance connected crypto since US President Donald Trump started his 2nd word connected Jan. 20.

On March 11, Cboe BZX asked regulators for permission to incorporated staking into Fidelity’s Ether ETF. Staking is not yet permitted by immoderate publically traded US Ether fund. 

Staking Ether enhances returns and involves posting ETH arsenic collateral with a validator successful speech for rewards.

Fidelity’s FETH is among the much fashionable Ether ETFs, with astir $780 cardinal successful nett assets arsenic of March 12, according to information from VettaFi. 

In February, the SEC delayed deciding connected akin regularisation changes projected by Nasdaq ISE and Cboe’s affiliate, Cboe Exchange — some US-based securities exchanges. 

The bureau intends to determine by April if Nasdaq tin database options tied to BlackRock’s iShares Ethereum Trust (ETHA). 

BlackRock’s money is the largest ETH ETF, with much than $3.7 cardinal successful nett assets, VettaFi’s information shows.

It volition regularisation connected Cboe Exchange’s bid to database options connected Fidelity’s Ether money successful May. 

Spot Ether ETFs were listed successful July 2024 and person proceeded to pull astir $7 cardinal successful nett assets, according to VettaFi’s data. 

Options are contracts granting the close to bargain oregon merchantability — “call” oregon “put,” successful trader parlance — an underlying plus astatine a definite price.

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