10.04.2025 13:24
The U.S. Securities and Exchange Commission (SEC) has officially approved options trading on spot Ethereum ETFs. The approved transactions for BlackRock, Bitwise, and Grayscale ETFs provide institutional investors with the opportunity to diversify their Ethereum positions and manage risk.
The recent decision, considered a turning point in the cryptocurrency market, came with the SEC's approach similar to Bitcoin ETFs. The Ethereum options transactions approved through a process called "accelerated approval" will offer investors broader strategies. This step by the regulatory body is seen as a significant advancement in the institutional integration of the Ethereum ecosystem.
Options Markets Open New Doors for Ethereum Investors
The SEC, in its announcement, allowed Nasdaq ISE, LLC's application for options transactions for the iShares Ethereum Trust. The agency also approved the proposal for options transactions on the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust by NYSE American LLC.
The regulatory body stated in the filing that "the proposed rule change, as amended by the No. 2 Amendment, is consistent with the requirements of the Act and the rules and regulations applicable to a national securities exchange."
Ethereum ETFs were approved nearly a year ago and began trading over the summer. Since then, firms have been striving for permission to conduct options transactions. The SEC also approved spot Bitcoin ETFs more than a year ago and allowed options transactions for these products in the later months of 2024.
ETF analyst James Seyffart stated that the SEC is expected to approve spot Ethereum ETFs. ETF Store president Nate Geraci indicated that more product launches are on the horizon.
Geraci stated, "As with Bitcoin ETFs, expect a series of new launches from issuers. We will see products like protected put option strategies and buffer ETH ETFs."
The price of Ethereum had recently dropped to around $1,400 but quickly rebounded to approximately $1,650 following the regulatory decision.
Many firms are also working to initiate staking practices in Ethereum ETFs. If approved, this could provide additional returns on ETH assets, which could be directly passed on to investors.