SEC Delays Decision on Ethereum Product

According to a regulatory filing dated February 28, the SEC has announced that it is delaying its decision on the Ethereum product.

Under U.S. federal law, if a decision is not made within the initial 180-day review period, the agency has an additional 60 days to reach a final verdict. As a result, Cboe will have to wait longer to find out if it has received approval to list options contracts on Fidelity’s Ethereum Fund (ticker FETH).

The SEC stated in its announcement that it is extending the review period to allow “sufficient time to consider the proposed rule change.”

Cboe first filed for regulatory approval to list Ether ETF options on August 19, 2024. A few weeks later, on September 4, 2024, the SEC published the proposed rule change in the Federal Register, opening it up for public comment.

Federal law grants the SEC up to 180 days after the initial filing of a proposed rule change to make a decision. If no decision is made within that period, the agency has an additional 60 days, but no more time can be granted.

For this proposal, the timeline indicates that March 3 would have marked the 180-day deadline, while May 2, 2025, will mark the full 240-day review period. This means the SEC now has until May 2, 2025, to issue its final ruling.

When Will the Final Decision Be Made?

While it remains uncertain whether the regulatory body will wait until then, the SEC’s recent shift toward a more supportive stance has created an optimistic market sentiment.

When the SEC makes its decision on Cboe’s application, it will also have issued a final decision on another Ethereum ETF options proposal.

This relates to the April 2025 deadline for options on BlackRock’s iShares Ethereum Trust. Nasdaq ISE filed an application to list and trade options contracts tied to ETHA in July 2024.

In a filing dated February 7, 2025, the SEC set April 9, 2025, as the deadline for a final decision.

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