he SEC has recently announced that it will delay the approval timeline for an option ETH ETF backed by Blackrock and Bitwise. The new deadline for approval are the following, Novembre 10th and 11th. The reason for this is more clarity needed.
Recent Bitcoin ETF Approval
This news came after the recent approval for an options trading of Blackrock Bitcoin trust last week. The approval of a Bitcoin option ETF was a very important milestone for the industry as a whole. As a result, more liquidity will be available which will attract larger investors into the crypto space.
The opportunity in the crypto derivatives market.
According to Matthew Sigel of VanEck, his report reveals that the derivatives market for Bitcoin is just 279 times smaller compared to both equity and commodity options. This highlights a huge opportunity for investors in the crypto derivatives market as it is just getting started and is very small compared to traditional financial instruments.
Ethereum as opposed to Bitcoin Options Volume
Data from a recent period indicates that Ethereum options volume ($9.2 billion) is just about one-third of the volume seen in Bitcoin ($33.3 billion). This highlights huge opportunities in ethereum ETFs if the SEC ends up approving the Option trading ETF in Novembre.
SEC Cautious on ETH ETF Options
The delay from the SEC on decision about the Ethereum ETF options trading is indicative of a careful approach by the regulator to the shifting crypto market and not necessarily a negative approach. Given the expanding opportunities in the crypto derivatives market, the pending decision might have a huge impact on Ethereum's presence and liquidity in the markets.
