The US Securities and Exchange Commission (SEC) has delayed its decision on Bitcoin Exchange-Traded Fund (ETF) option trades and is anticipated to reject proposals for Ethereum ETFs. This delay highlights the regulatory body's cautious approach to cryptocurrency-related offerings in the financial sector.

The decision to postpone was announced recently, with the SEC indicating a need for additional public feedback. Industry members and observers now have a 21-day period to submit their comments, followed by responses required within 35 days. The SEC is particularly interested in exploring whether Bitcoin ETF options should adhere to the same regulatory framework as traditional stock options.

The proposal under consideration was submitted by major exchanges such as the Cboe Exchange and Nasdaq ISE, marking a significant moment in the regulatory landscape for cryptocurrency options. This follows the SEC's approval of 11 Bitcoin ETFs in January, which have since attracted a total investment inflow of $12.38 billion.

Meanwhile, prospects for Ethereum ETFs appear less favorable. Discordant discussions with the SEC have led industry insiders to anticipate rejection of pending applications. The SEC's hesitance may stem from the need for a more thorough assessment of the Ethereum market, which is less understood compared to Bitcoin. A potential rejection of Ethereum ETFs could impede the cryptocurrency's broader acceptance as a mainstream financial asset and potentially lead to legal disputes similar to those surrounding Bitcoin ETF approvals.