The U.S. Securities and #exchange Commission (SEC) has once again delayed a decision and the ability to list options associated with spot #EthereumETFs .

The SEC has postponed the deadline for a decision on a proposed rule change that would allow the #Cboe Exchange to list options associated with several popular spot $ETH
funds. According to the document, the deadline for the regulator to issue a ruling has been moved from Oct. 19 to Dec. 3.

In August, Cboe filed a request with the SEC for permission to pour options on nine ETFs, including BlackRock's iShares Ethereum Trust ETF, Fidelity Ethereum Fund, #GRAYSCALE Ethereum Trust and Grayscale Mini Ethereum Trust.

In September, the SEC deferred consideration of a similar rule change proposal from the Nasdaq Electronic Exchange seeking permission to list options on the iShares Ethereum Trust.

On Sept. 20, the SEC allowed Nasdaq to list options related to BlackRock's Bitcoin-ETF, the iShares Bitcoin Trust (IBIT). The bitcoin-ETF options are awaiting final approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC) before listing.

According to James Seyffart, an analyst at Bloomberg Intelligence, #Bitcoin-ETF options are likely to launch in the U.S. by the first quarter of 2025. “I think an options launch is possible before the end of the year, but it's more likely to happen in the first quarter of 2025,” Seyffart said Oct. 9.

Options are contracts that give the right to buy or sell - a “call” or “put” in traders' parlance - an underlying asset at a certain price. In the U.S., if one party fails to honor the agreement, the OCC (U.S. Office of the Comptroller of the Currency) steps in and settles the transaction.

The listing of spot crypto options on regulated U.S. exchanges, where the OCC protects traders from counterparty risk, marks progress in the cryptocurrency markets and creates “extremely attractive opportunities” for investors, said Jeff Park, head of alpha strategy at Bitwise Invest.

Financial advisers, who control up to half of the investment flows in the $9 trillion ETF market, rely on options to protect against sharp market moves. According to a survey by The Journal of Financial Planning, more than 10% of advisors were actively using options to manage client portfolios as of 2023.

The SEC's delayed decision on Ethereum-ETF options is indicative of the regulator's continued cautious approach to cryptocurrency products. Despite the approval of bitcoin-ETF options, the SEC continues to scrutinize the potential risks and implications of introducing such instruments for Ethereum. This decision may affect the pace of development and adoption of cryptocurrency financial products in traditional markets.