2024-10-12
The U.S. Securities and Exchange
Commission (SEC) has once again delayed its decision on whether to allow
exchanges to list options tied to spot Ethereum ETFs.
The new deadline for a ruling has been
extended from October 19 to December 3, 2024. This delay affects major players
like BlackRock and Bitwise, who are keen to launch these financial products.
An option in trading is a type of
financial contract that gives the buyer the right, but not the obligation, to
buy or sell an underlying asset (such as a stock, commodity, or index) at a
predetermined price (called the strike price) before or on a specific date
(called the expiration date). Options are considered derivatives because their
value is derived from the value of the underlying asset.
There are two main types of options:
Call Option gives the buyer the right
to buy the underlying asset at the strike price before the expiration date.
Traders typically buy call options when they expect the price of the underlying
asset to rise.
Put Option gives the buyer the right to
sell the underlying asset at the strike price before the expiration date.
Traders buy put options when they expect the price of the underlying asset to
fall.
