SEC Approves Options Trading for Spot Ethereum ETF, Signaling Major Institutional Shift
In a landmark decision, the U.S. Securities and Exchange Commission (SEC) has approved the listing and trading of options on the iShares Ethereum Trust, marking a major regulatory breakthrough for the cryptocurrency industry.
The SEC's order, issued under Release No. 34-102798; File No. SR-ISE-2024-35, grants accelerated approval to the Nasdaq ISE LLC proposal, officially permitting the introduction of options contracts on spot Ethereum ETFs. This development arrives after several rounds of rule changes and amendments initiated by Nasdaq ISE beginning in July 2024, with key procedural milestones reached by November 8, 2024.
According to reports by BlockBeats, the approval is expected to significantly reshape how institutional and retail investors engage with Ethereum. With an estimated $112 billion in ETH-backed assets, U.S.-based Ethereum ETFs are already demonstrating strong market performance.
"The ability to trade options on ETH ETFs introduces flexibility, hedging opportunities, and increased exposure for diverse investor strategies," said a market analyst familiar with the matter.
This decision mirrors earlier approvals by the SEC for other crypto-related ETFs, including Nasdaq and Cboe BZX listings of products from Hashdex and Franklin Templeton. Leading asset manager Bitwise has also submitted multiple filings, including for a proposed Bitcoin-Ethereum ETF, while Fidelity is pursuing ETH staking functionality within its ETF products.
