The United States Securities and Exchange Commission (SEC) has delayed deciding on Nasdaq’s proposed rule change to allow the listing and trading of options
The United States Securities and Exchange Commission (SEC) has postponed making a decision on whether to approve Nasdaq’s proposed rule change that would allow the listing and trading of options on BlackRock’s Ethereum exchange-traded fund (ETF).
The decision was initially expected on Sept. 26, but the SEC has now pushed the deadline to Nov. 10, according to a press release on Tuesday.
“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change,” the SEC said in the press release.
In a separate filing, the SEC also postponed a decision on NYSE American LLC’s proposed rule change to list and trade options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. The new deadline for NYSE American is Nov. 11.
If approved, these options on the ETH ETFs will follow the same listing and trading rules as other trusts, including criteria for underlying securities, expirations, strike prices, and trading halts.
Nasdaq filed with the SEC to list and trade options linked to BlackRock’s ETHA on Aug. 6. The move aims to expand the available investment tools for Ethereum and make crypto more accessible to traditional investors.
The exchange added that the rule change would benefit investors by providing a lower-cost method to gain exposure to Ether, the second-largest cryptocurrency by market capitalization, and cater to their investment needs, which often include hedging and speculating.
For the uninitiated, options are a crucial instrument for traders who wish to hedge against potential losses in their investments or to speculate on the future price of an underlying asset, such as a stock or ETF. Options offer flexibility as they give the buyer the option to buy or sell an asset at a specified price and on a predetermined date.
The postponement comes after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT) last week. Bloomberg’s senior ETF analyst Eric Balchunas described the move as a “huge win” for Bitcoin ETFs as it is expected to eventually attract more liquidity and, in turn, more “big fish.”
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