The U.S. Securities and Exchange Commission (SEC) has postponed its decision regarding the approval of Cboe Exchange’s application to list options on Fidelity Investments’ spot Ethereum exchange-traded fund.
In a regulatory update on February 28, the SEC announced that it is extending the timeline for the Ethereum (ETH) product review.
According to U.S. federal law, the SEC has an additional 60 days to finalize its judgment if a decision is not reached within the initial 180-day review period. Consequently, Cboe must await an extended period to learn if it will be permitted to list options contracts on Fidelity’s Ethereum Fund, designated as ticker FETH.
The SEC stated that the review period is being prolonged to ensure “sufficient time to consider the proposed rule change.”
Cboe initially submitted its request for regulatory approval to list Ether ETF options on August 19, 2024. Shortly thereafter, on September 4, 2024, the SEC published the proposed rule change in the Federal Register, inviting public comments.
When Can We Expect the SEC’s Final Decision?
As per federal regulations, the SEC has up to 180 days following the original filing of a proposed rule change to make a determination. If a resolution is not reached during this timeframe, the agency is granted an additional 60 days before it must either approve or reject the application.
The timeline indicates that March 3 represents the 180-day deadline for this proposal, while May 2, 2025, will mark the complete 240-day review period. Therefore, the SEC has until May 2, 2025, to announce its final ruling.
Whether the SEC will take all the allotted time remains to be seen. However, following the regulatory agency’s recent inclination toward a more favorable approach, market sentiment appears to be positive.
By the time the SEC delivers its ruling on Cboe’s application, it will have already reached a conclusion on a separate proposal concerning Ethereum ETF options.
This includes a forthcoming April 2025 deadline for options tied to BlackRock’s iShares Ethereum Trust. Nasdaq ISE filed to list and trade options contracts related to ETHA in July 2024.
In a filing dated February 7, 2025, the SEC set April 9, 2025, as the target date for its final decision.
