Nasdaq and BlackRock Seek SEC Approval for Ethereum ETF Options

Nasdaq and BlackRock Seek SEC Approval for Ethereum ETF Options

BlackRock and Nasdaq took a significant step on Tuesday by filing with the SEC to introduce options for the iShares Ethereum Trust (ETHA), BlackRock’s spot Ethereum ETF.

The Nasdaq’s proposed rule change specifically targets ETHA, the sole Ether ETF listed on Nasdaq’s electronic exchange. In contrast, other Ether ETFs are traded on platforms like the NYSE Arca or the Cboe.

This filing marks a major advancement in the broader acceptance of Ether ETFs in the financial world. Since their debut in July, these funds have attracted considerable attention from investors, amassing approximately $1.5 billion in net inflows.

An option is a type of financial contract that grants the holder the right, but not the obligation, to buy or sell an asset at a predetermined price.

In the cryptocurrency market, options on Ether and Bitcoin function under the same principles. They allow investors to speculate on the price movements of these digital currencies without needing to own the assets themselves.

“The exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower-cost investment tool to gain exposure to spot Ether, as well as a hedging vehicle to address their investment needs related to Ether products and positions,” according to the filing.

Bloomberg Analyst Predicts SEC Decision on BlackRock Ethereum ETF Options by Early 2025 The public has a 21-day period to provide feedback on the proposed rule change. Bloomberg Intelligence analyst James Seyffart anticipates that the SEC will likely reach a final decision on the proposal by around April 9, 2025.

Additionally, Nasdaq highlighted that it already offers options trading on commodity ETFs structured as trusts, including BlackRock’s iShares COMEX Gold Trust and iShares Silver Trust.

Spot Bitcoin ETFs, launched in January and now commanding over $50 billion in assets, are still awaiting SEC approval for options trading. BlackRock’s Bitcoin ETF was among the first spot Bitcoin ETFs approved, starting trading in June. Six options exchanges have since requested the ability to list options on spot Bitcoin ETFs, but in July, the SEC indicated that it required more time to make a decision.