SEC Holds Off on Decision for Bitcoin and Ether ETFs Until April
SEC delays verdict on Bitcoin & Ether ETF options, pushing decision to April amid regulatory inspection
The U.S. Securities and Exchange Commission (SEC) has delayed its decision on allowing Cboe Global Markets to offer Bitcoin ETF options trading until April. This decision, originally due in response to Cboe's January application, underlines the complexity of Bitcoin as an asset.
Cboe's application is noteworthy because it requires exceptions to current rules that usually allow for options listing on an ETP shortly after they start trading.
The application also highlights the need for approvals from both the SEC and the Commodity Futures Trading Commission (CFTC) for the Options Clearing Corporation (OCC) to manage these options. Cboe plans to list the options once it gets the green light from regulators.
This postponement by the SEC isn't just for Cboe; similar delays have affected proposals from the New York Stock Exchange (NYSE) and Nasdaq, aiming to introduce various Bitcoin and commodity-based financial products.
These decisions are now all pushed to April. Meanwhile, BlackRock's IBIT ETF has seen significant success, notably breaking trading volume records and attracting massive investment inflows, signaling strong investor interest.
This enthusiasm helped push Bitcoin's price to a new record, though it later experienced a notable drop. Currently, Bitcoin's price is recovering, moving back towards its recent peak.
In addition to Bitcoin ETF options, the SEC is reviewing proposals for Ether (ETH) ETFs from major firms like BlackRock and Fidelity, as well as an application from Coinbase. These decisions have also been delayed, with the SEC asking for public feedback.
Some concerns approving these ETFs could lead to increased risk concentration within the Ethereum network.
A report from S&P Global Ratings suggests that large ETFs engaging in staking could significantly influence the network's validator distribution, particularly if these ETFs choose to stake through a major custodian like Coinbase, potentially exacerbating centralization concerns.
