The US Securities and Exchange Commission (SEC) gave the green light for options trading for multiple spot Ether (ETH) exchange-traded funds (ETFs). The approval is likely to improve Ether's investment appeal among institutional traders.
The approval was granted following a review of a proposed rule change tendered by BlackRock for its iShares Ethereum Trust (ETHA).
SEC Approves Options Trading on Ether ETFs
The United States Securities and Exchange Commission (SEC) has approved options trading on Ethereum ETFs. The SEC announced an “accelerated approval” for Nasdaq ISE’s proposal to allow options trading on BlackRock’s Ethereum ETF. According to an April 9 filing, the regulator also approved a request from NYSE American to allow trading options for the Bitwise Ethereum ETF, Grayscale’s Ethereum Trust and Ethereum Mini Trust, and Fidelity’s Ethereum Fund.
The SEC’s approval of options trading means investors can soon trade options like financial contracts that allow them to follow the price movements on these Ether ETFs, similar to what investors can do with spot Bitcoin ETFs.
In its response to the Nasdaq, the SEC stated the following:
“…the Exchange proposes to amend its rules to permit the listing and trading of options on the Trust.”
Adding;
“The Exchange states that options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their needs in connection with ether products and positions.”
What Does This Mean?
The SEC’s approval of options trading adds more flexibility and depth to crypto investing. With the approval, investors can hedge their ETH positions by betting on the price of ETH without having to buy or sell ETH (the underlying asset) directly. Options are also a popular trading vehicle to leverage and hedge risk and are attractive to institutional investors who want to control vast amounts of shares.
Expanding the reach of trading is expected to increase trading activity and make ETH ETF more appealing to retail and institutional investors.
James Seyffart, ETF Analyst at Bloomberg Intelligence, highlighted the approvals on his X feed, saying they were “100% expected.”
Good news. Ethereum ETF options approved. Was 100% expected. Today was final deadline. I personally don't see it on the SEC website yet but id be shocked if it weren't true. https://t.co/XjOxE0ZqUt
— James Seyffart (@JSeyff) April 9, 2025
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice