Nasdaq, BlackRock Seek Approval for Spot Ethereum ETF Options

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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August 7, 2024 00:07 EDT

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BlackRock and Nasdaq on Tuesday filed with the SEC to introduce options for the iShares Ethereum Trust (ETHA), BlackRock’s spot Ethereum ETF.

Nasdaq’s proposed rule change is aimed solely at ETHA, the only Ether ETF listed on Nasdaq’s electronic exchange. Other Ether ETFs are listed on the New York Stock Exchange’s (NYSE) Arca or the Cboe.

This filing represents a significant milestone in the mainstream acceptance of Ether ETFs. Since their launch in July, these funds have garnered substantial investor interest, accumulating about $1.5b in net inflows.

An option is a financial contract that gives the holder the right, but not the obligation, to buy or sell an asset at a set price.

In the crypto market, Ether and Bitcoin options operate under the same principle. They enable investors to speculate on the cryptocurrencies’ price fluctuations without holding the actual digital currencies.

“The exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions,” the filing read.

Bloomberg Analyst Predicts SEC Decision on BlackRock Ethereum ETF Options by Early 2025

The public has a 21-day window to submit feedback on the proposed rule change. According to Bloomberg Intelligence analyst James Seyffart, the SEC is expected to make a final decision on the proposal around April 9, 2025.

Further, Nasdaq pointed out that it already offers options trading on commodity ETFs structured as trusts. These include BlackRock’s iShares COMEX Gold Trust and iShares Silver Trust.

Nasdaq and BlackRock's filing to add options on Ethereum ETFs has hit the SEC site. Final SEC decision on this from SEC likely to be around April 9th, 2025.

(SEC is not the only decision maker on adding options here. Also need signoff from OCC & CFTC) https://t.co/K4HunUPp7S pic.twitter.com/5kQH0mljTz

— James Seyffart (@JSeyff) August 6, 2024

Spot Bitcoin ETFs, launched in January and now control over $50b in assets, still await SEC approval for options trading. BlackRock’s Bitcoin ETF was among the first batch of approved spot Bitcoin ETFs, starting to trade in June. Six options exchanges had requested to list options on spot Bitcoin ETFs. But in July, the SEC informed them that it needed more time to make a decision.