SEC Approves Options on Spot Ethereum ETFs

The United States Securities and Exchange Commission (SEC) has approved options trading for several spot Ether (ETH) exchange-traded funds (ETFs), potentially enhancing Ether’s investment appeal among institutional traders.

The approval, issued on April 9, follows a rule change proposal submitted by BlackRock for its iShares Ethereum Trust (ETHA) on July 22, 2024.

Similar approvals were granted to Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and Fidelity Ethereum Fund (FETH).

The SEC stated in response to Nasdaq, “The Exchange proposes to amend its rules to permit the listing and trading of options on the Trust,” highlighting that these options will offer investors a cost-effective tool for exposure to spot Ether, as well as a hedging mechanism for their Ether-related investments.