The US Securities and Exchange Commission (SEC) is taking a cautious approach to expanding crypto investment options, delaying key decisions on exchange-traded funds (ETFs) tied to Ethereum and Solana. The agency recently postponed its ruling on whether Cboe BZX can list options on Fidelity’s Ether ETF, pushing the deadline to May 14. Meanwhile, asset manager Franklin Templeton has filed for a Solana ETF with Cboe BZX, proposing that the fund be allowed to stake its SOL holdings for additional rewards.
SEC Delays Decision on Cboe BZX’s Request to List Options on Fidelity’s Ether ETF
The US SEC has postponed its ruling on whether the Cboe BZX Exchange can list options tied to Fidelity’s Ethereum exchange-traded fund (ETF). According to a March 12 SEC filing, the regulatory body has extended its decision deadline to May 14, giving itself additional time to review the proposal.
The delay marks yet another instance of the SEC exercising caution in the evolving cryptocurrency investment landscape. While the introduction of options on Ether ETFs would represent a major milestone in integrating digital assets into traditional financial markets, regulatory uncertainty continues to loom over such innovations.
Cboe BZX initially submitted its request to list options on Fidelity’s Ether ETF (FETH) in January. If approved, this move could significantly enhance liquidity and institutional engagement in the Ethereum market by allowing sophisticated investors to hedge their positions and employ advanced trading strategies.
Options trading plays a crucial role in the traditional financial ecosystem, providing traders with flexibility in managing risk and leveraging market movements. By extending this mechanism to Ether ETFs, institutional investors could gain a new level of exposure to Ethereum while mitigating potential downside risks.
Fidelity’s FETH currently holds approximately $780 million in net assets, making it one of the leading Ether ETFs in the market. As institutional interest in Ethereum continues to grow, the ability to trade options on such funds would further cement Ether’s position as a mainstream financial asset.
The SEC’s latest delay comes against the backdrop of a wave of cryptocurrency ETF-related filings in recent months. In February, the agency acknowledged over a dozen exchange filings for various crypto-related ETFs. This increased engagement suggests a possible shift in the regulatory approach to digital assets under the new administration of US President Donald Trump, who assumed office for his second term on Jan. 20.
While the SEC has long been cautious in its handling of cryptocurrency-related financial products, the acknowledgment of these filings indicates a gradual opening toward more crypto-friendly regulations. Market analysts speculate that the current wave of delays could be a sign that the SEC is carefully assessing the broader impact of approving options trading on Ether ETFs.
Beyond the options listing, Cboe BZX made another groundbreaking request on March 11, asking the SEC for permission to incorporate Ethereum staking into Fidelity’s Ether ETF. If approved, this would mark the first instance of a publicly traded US Ether fund allowing staking—a mechanism that enables investors to earn rewards by locking up their ETH with validators on the Ethereum network.
Staking has become an increasingly popular way to generate passive income within the crypto ecosystem. However, concerns over regulatory scrutiny have prevented major US-based crypto ETFs from integrating staking rewards into their offerings. The SEC’s stance on staking remains unclear, with the agency previously cracking down on certain staking services provided by centralized exchanges like Kraken.
Approval of staking within an Ether ETF would be a major development, as it could enhance returns for investors and make these funds even more attractive compared to traditional investment vehicles.
Competition Heats Up Among Ethereum ETFs
While Fidelity’s FETH remains one of the more prominent Ether ETFs, BlackRock’s iShares Ethereum Trust (ETHA) leads the market with more than $3.7 billion in net assets, according to VettaFi data. The SEC is set to decide by April whether Nasdaq can list options tied to ETHA, a decision that could set a precedent for future approvals, including Fidelity’s bid.
Ethereum ETFs have gained significant traction since their launch in July 2024, collectively amassing nearly $7 billion in net assets. Their growing adoption suggests increasing institutional confidence in Ethereum as a long-term asset class.
With multiple filings under review, the SEC’s upcoming decisions could have profound implications for the cryptocurrency market. The agency has set an April deadline to rule on Nasdaq’s request to list options on BlackRock’s ETHA, while Cboe’s request to list options on Fidelity’s FETH will be addressed by May.
If approved, options trading on Ether ETFs could open the floodgates for even greater institutional participation, further legitimizing Ethereum as an investable asset. However, the SEC’s history of delays and cautious approach suggests that regulatory approval is far from guaranteed.
Cboe Files for Franklin Templeton’s Solana ETF Amid Growing Institutional Interest in Crypto
In other ETF news, the Chicago Board Options BZX Exchange (Cboe) has officially submitted an application on behalf of asset management giant Franklin Templeton to list a Solana (SOL) exchange-traded fund (ETF) in the United States.
According to a March 12 filing, Franklin Templeton’s proposed ETF will hold spot Solana, with an additional request to allow staking. The filing emphasized the importance of staking, likening it to traditional equity funds collecting dividends.
The proposed Franklin Templeton Solana ETF aligns with the increasing trend of institutional interest in Solana, a blockchain network that has gained significant traction for its high-speed, low-cost transactions and growing decentralized finance (DeFi) and NFT ecosystems.
The filing made a strong case for allowing staking, arguing that barring the ETF from staking its SOL would be equivalent to refusing dividends from stocks held in an equity-based exchange-traded product (ETP).
Franklin Templeton’s foray into Solana follows its registration of a Solana trust on Feb. 10, joining major asset managers such as Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital—all of whom have submitted applications to launch Solana investment products.
Despite this momentum, regulatory approval remains uncertain. The SEC has historically taken a cautious approach to crypto-based financial products, often delaying or rejecting applications due to concerns over market manipulation, volatility, and investor protection.
Solana’s inclusion in Franklin Templeton’s ETF filing is particularly noteworthy given its brief mention in the early crypto stockpile discussions by the Trump administration. Before scaling back to include only tokens seized through enforcement actions, President Trump initially named Solana among the assets considered for inclusion in the US government’s digital holdings.
This initial recognition by the administration, combined with Franklin Templeton’s growing involvement in the crypto sector, suggests a potential shift in how US regulators might view Solana as an institutional-grade investment asset.
While the Franklin Templeton Solana ETF filing marks a significant milestone, it arrives amid continued regulatory delays on crypto-based investment products. The SEC, now operating under new leadership following former Chair Gary Gensler’s resignation in January 2025, recently announced that it would delay decisions on several altcoin ETF applications.
This postponement reflects the regulator’s cautious stance as it evaluates whether approving ETFs for alternative cryptocurrencies aligns with its investor protection mandate. However, Bloomberg ETF analyst James Seyffart pointed out that such delays are standard procedure and do not necessarily indicate a lower probability of approval. Seyffart emphasized that the final deadline for these altcoin ETFs is not until October 2025, leaving ample time for regulatory assessments and potential adjustments.
Franklin Templeton CEO Optimistic About Crypto Integration
Franklin Templeton’s CEO, Jenny Johnson, remains optimistic about the evolving regulatory landscape under the Trump administration. In a Jan. 21 interview with Bloomberg, Johnson expressed confidence in a pro-crypto agenda that could lead to the deeper integration of traditional finance with blockchain technology.
“I do think that it’s likely that ETFs and mutual funds will ultimately be built on blockchain just because it’s an incredibly efficient technology,” Johnson said.
Her comments are part of the broader industry sentiment that blockchain could revolutionize traditional financial products, offering increased transparency, reduced settlement times, and enhanced security.
If approved, Franklin Templeton’s Solana ETF would provide traditional investors with regulated exposure to SOL without the need for direct ownership or private key management. The additional request to incorporate staking could further enhance investor returns, making the ETF an attractive option for both retail and institutional investors.
While the SEC’s regulatory timeline remains uncertain, the increasing number of filings for Solana-based investment products signals growing confidence in the blockchain’s long-term viability. Institutional interest continues to rise, and with market heavyweights like Franklin Templeton backing Solana, it may only be a matter of time before SOL joins Bitcoin and Ethereum in the ranks of fully regulated investment vehicles.
This article was originally Posted on Coinpaper.com
