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The US Securities and Exchange Commission (SEC) has delayed its decision on approving options trading on Ethereum (ETH) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according to a Nov. 8 filing.

Notably, the SEC stated in the filings that interested parties can submit arguments within 21 days about whether options for Ethereum ETFs should be approved or disapproved.

Additionally, the filing emphasized that the Options Clearing Corporation (OCC) would issue final approval for options trading, even if it greenlights the applications. Additionally, it would also require the approval of the Commodity Futures Trading Commission (CFTC).

An options contract is a derivative that allows two parties to agree to buy or sell an asset at a specific price and within a particular time frame.

Like futures contracts, institutional investors use options to hedge against their positions in the spot market.

Bloomberg senior ETF analyst Eric Balchunas said in September, following the approval of options for Bitcoin (BTC) ETFs, that these tools attract more liquidity and, consequently, more "big fish."

Adding options might generate much-needed cash flow in the Ethereum ETFs, whose net flows amount to negative $410 million, according to Farside Investors' data.