Just a few days after giving the nod for a rule change that sees Bitcoin ETFs get an opportunity for option listing, the Security Exchange Commission has shifted its approval date for Ethereum ETF Options listing further. The submission from Nasdaq’s International Securities Exchange proposed an alteration to a rule to permit ETHA to offer listing and trading opportunities for options investors. ETHA is BlackRock’s iShares Ethereum Trust.
The submission was made by Nasdaq on the 22nd of July and the SEC’s verdict on the submitted proposal was slated for the 26th of September. However, the exchange licensing body has announced a new date for their verdict on the listing and trading of options on ETHA. According to a communique, the new date for the SEC’s verdict has been set at the 10th of November 2024.
After approval, the traditional money market as we know it to be will take a new look as it would experience a new wave of crypto-induced market situations. One of such anticipated scenarios is the influx of liquidity and a rise of bullish positions.
Why that is a speculation at the moment, what is certain if the proposal is approved is the manner of its operations. The regulatory framework of ETHA options listing will have no difference from other trading derivatives linked to exchange traded funds. This is believed to provide investors with hedging opportunities against risk while providing a tool to analyze ETH’s price trend.
Delaying the approval date, the SEC maintained that the move was necessary to enable it to assess the possible market impact of the approval.
Citing the Securities Exchange Act under Section 19(b)(2)which permits a regulatory body to extend an approval date further for 90 days to enable assess the potential effect of a ruling on risk and the stability of a market, the SEC mentioned that on the 10th of November, it shall approve, disapprove or initiate proceedings to decide if it has to disapprove the rule change.
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