SEC delays decision on BlackRock's Ethereum ETF options trading until April 9

The U.S. Securities and Exchange Commission delayed a decision on Friday on whether to approve BlackRock's proposal to list and trade options on its spot Ethereum exchange-traded fund.

The SEC said it will decide on April 9, 2025, whether to approve or disapprove allowing options trading on the world's largest asset manager's iShares Ethereum Trust, according to the filing.

"The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein," the agency said.

BlackRock's spot Ethereum ETF was approved along with eight others in May and began trading over the summer. Later, Nasdaq, on behalf of BlackRock, filed a rule change in August to list and trade options of the iShares Ethereum Trust. 

Two letters were filed in response to Nasdaq's proposal. One from Better Markets said that the SEC should "tread carefully" before allowing options trading on either spot bitcoin ETFs and spot Ethereum ETFs and said both were equally volatile. Better Markets is a nonprofit, nonpartisan organization working on building a strong financial system and has been critical of crypto.

"Retail investors already lose billions of dollars trading options," Better Markets' Director of Securities Policy Benjamin Schiffrin said in the letter. "Options on spot ether ETPs would only give sophisticated market participants another way to use options trading to take advantage of the retail investors to whom the options will inevitably be marketed." 

Also on Friday, the SEC asked for public comments on a proposal from Cboe BZX Exchange Inc., on behalf of Fidelity, to list and trade options on its spot Ethereum ETF. Those comments are due 21 days after being published in the Federal Register.