SEC Gives Green Light to Ether ETF Options Trading
The regulator had previously delayed its decision in February, but according to ETF analyst James Seyffart, the approval came as no surprise.
Key Points:
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The SEC has granted approval for options trading on BlackRock’s Ethereum ETF.
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The application for this product was originally submitted by Nasdaq ISE in July 2024.
The Securities and Exchange Commission (SEC) has approved the launch of options trading linked to Ethereum (ETH) exchange-traded funds (ETFs).
On Wednesday, the SEC approved a proposal from Nasdaq ISE—originally submitted in July—to list options contracts on BlackRock’s iShares Ethereum Trust (ETHA). Options are widely used for leveraging positions and managing risk, making them particularly appealing to institutional investors handling large volumes.
The Commission faced a deadline to make its decision by today. According to Bloomberg Intelligence ETF analyst James Seyffart, the approval was “100% expected.”
This approval is specific to ETHA, meaning BlackRock’s ETF is currently the only spot Ether fund eligible for options trading.
Other Ethereum ETFs are listed on exchanges such as the New York Stock Exchange’s Arca and Cboe. Cboe has also submitted its own application seeking approval to offer options trading on the ETFs it hosts.
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