SEC Approves Options Trading for BlackRock’s Ethereum ETF

The U.S. Securities and Exchange Commission (SEC) has officially approved options trading for BlackRock’s iShares Ethereum Trust (ETHA), marking a notable development in the institutional adoption of Ethereum-based financial products.

The approval, announced via CoinDesk on April 9, gives the Nasdaq ISE the green light to list options contracts for ETHA, following a request initially filed in July 2024.

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Options Open Doors for Institutional Strategies

Options contracts allow investors to hedge risk or gain leveraged exposure, making them especially attractive to institutional players managing large positions. With this approval, ETHA becomes the first and only spot Ethereum ETF with authorized options trading in the United States.

Other Ethereum ETFs are listed on platforms such as NYSE Arca and the Chicago Board Options Exchange (CBOE), which currently do not offer options trading for their respective ETH products.

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A Long-Anticipated Move

James Seyffart, ETF analyst at Bloomberg, commented that the decision was

“100% expected,”
emphasizing that the SEC’s approval came on the final deadline day allotted for a decision.

The move comes as Ethereum continues to gain traction within U.S. regulatory frameworks, following earlier approvals of spot Bitcoin ETFs and the expansion of crypto-related financial instruments.

BlackRock’s ETHA, which has quickly grown in assets under management since its launch, now stands to further broaden its appeal with the added flexibility of options trading.