In a filing on Friday, the Securities & Exchange Commission (SEC) noted that it had delayed its decision on the New York Stock Exchange (NYSE) proposal to list and trade options on Ethereum exchange-traded funds (ETFs).
The SEC announced it would delay its decision regarding the NYSE proposal to list options on various Ethereum ETFs on its exchange. According to the filing, the delay allows the SEC to examine the proposal further and ensure compliance with regulatory standards and investor protections.
This includes the proposal's ability to prevent market manipulation, safeguard investors, and maintain a fair trading environment, as outlined in Section 6(b)(5) of the Exchange Act.
The NYSE American LLC filed the rule change to the SEC in August, which would allow it to list and trade three ETH ETF options. The ETFs include the Bitwise Ethereum ETF, the Grayscale Ethereum Trust and the Grayscale Ethereum Mini.
The delay in the SEC's approval may further invite criticism from the crypto community, who strongly anticipate a new administration.
A change in the SEC administration may fast-track the approval of proposals such as the ETF options, including instruments for other tokens, such as the XRP ETF.
Additionally, a more lenient SEC administration could also allow issuers to stake their ETH ETF assets in the future.
In other news, BlackRock's iShares Bitcoin Trust (IBIT) recorded the largest-ever BTC inflow since the products began trading after recording $1.1 billion in inflows on Thursday, per Coinglass data. IBIT achieved this new milestone after just ten months of going live.