The US Securities and Exchange Commission has deferred its decision on whether to allow the Cboe BZX Exchange to list options tied to Fidelity’s Ether (ETH) exchange-traded fund (ETFs).
The agency has set a deadline of May 14 to either approve or reject Cboe BZX’s proposal regarding Fidelity Ethereum Fund (FETH), as noted in a filing made on March 12.
Cboe BZX originally filed its request to list options on Fidelity’s Ether ETFs back in January, according to the filing.
Creating options for Ether funds represents a significant advancement in drawing institutional investment into the cryptocurrency sector.
Ether ETFs by net assets. Source: VettaFi
Related: SEC recognizes a surge of crypto ETF applications as evaluations and approvals gain momentum
Surge of Applications
In February, the SEC noted over a dozen exchange applications pertaining to cryptocurrency ETFs, as per available records.
This acknowledgment signifies a shift in the agency’s approach toward cryptocurrencies since the beginning of President Trump’s second term on January 20.
On March 11, Cboe BZX petitioned regulators for approval to incorporate staking into Fidelity’s Ether ETF. Currently, staking is not allowed by any publicly traded US Ether fund.
Staking Ether boosts returns and involves locking ETH as collateral with a validator in return for rewards.
Fidelity’s FETH is among the more prominent Ether ETFs, boasting approximately $780 million in net assets as of March 12, according to VettaFi’s data.
In February, the SEC postponed its decision on analogous rule changes proposed by Nasdaq ISE and Cboe’s affiliate, Cboe Exchange — both based in the US.
The agency plans to reach a conclusion by April regarding Nasdaq’s proposal to list options linked to BlackRock’s iShares Ethereum Trust (ETHA).
BlackRock’s fund stands as the largest ETH ETF, with over $3.7 billion in net assets according to VettaFi.
The SEC will also decide on Cboe Exchange’s request to list options on Fidelity’s Ether fund in May.
Spot Ether ETFs were launched in July 2024 and have subsequently gathered nearly $7 billion in net assets, based on VettaFi data.
Options are contracts that provide the right to buy or sell—commonly referred to as “call” or “put” options in trading jargon—an underlying asset at a specified price.
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