The US Securities and Exchange Commission (SEC) has delayed its decision on approving options trading on Ethereum exchange-traded funds (ETFs) on the NYSE, citing the need for more time to review the proposal and assess market implications. This decision affects Bitwise’s ETHW, Grayscale’s ETHE, Ethereum Mini Trust, and BlackRock’s ETHA. The SEC stated that interested parties can submit arguments within 21 days. The OCC would issue final approval for options trading, requiring the approval of the CFTC. Options contracts allow two parties to buy or sell an asset at a specific price and time frame. Institutional investors use options to hedge against their positions in the spot market, attracting more liquidity and big fish. Adding options to Ethereum ETFs might generate much-needed cash flow, as their net flows are negative $410 million.
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