The U.S. Securities and Exchange Commission (SEC) has granted approval for the listing and trading of options linked to several spot Ethereum exchange-traded funds (ETFs).
Recent filings indicate that investors can now engage in options trading associated with BlackRock’s iShares Ethereum Trust (ETHA), the Bitwise Ethereum ETF, Grayscale’s Ethereum Trust, and the newly introduced Ethereum Mini Trust.
Options are financial instruments that provide the purchaser with the right to buy or sell the underlying asset, in this case, Ethereum (ETH), at a specified price before a designated date.
James Seyffart, an ETF analyst at Bloomberg Intelligence, expressed that the approval was entirely anticipated, noting that the Commission had a deadline until April 9 for making a decision.
“Good news. Ethereum ETF options approved. Was 100% expected. Today was final deadline. I personally don’t see it on the SEC website yet but I’d be shocked if it weren’t true,” he stated on social media. https://t.co/XjOxE0ZqUt
— James Seyffart (@JSeyff) April 9, 2025
Furthermore, Nate Geraci, president of the ETF Store, hinted at the likelihood of additional similar launches in the near future.
“As with Bitcoin ETFs, anticipate a surge of new launches from issuers,” he commented on X, adding, “Covered call strategy ETH ETFs, buffer ETH ETFs, etc.”
“SEC has approved options trading on spot ETH ETFs… like with BTC ETFs, expect to see a bunch of new launches from issuers. Covered call strategy ETH ETFs, buffer ETH ETFs, etc.” https://t.co/Ndqz4cEBQ2
— Nate Geraci (@NateGeraci) April 9, 2025
SEC’s Delayed Decision Over Ether ETF Options
The SEC’s recent approval of ETHA options follows an earlier delay in its decision-making process regarding options trading for Ethereum ETFs. Nasdaq ISE had filed for these options on July 22, 2024.
In response to Nasdaq’s filing on behalf of BlackRock, a letter from Better Markets cautioned the SEC to proceed with caution when considering options trading for both spot Bitcoin and Ethereum ETFs, citing concerns over their significant volatility.
In October of the previous year, the SEC had authorized options trading on 11 Bitcoin ETFs across NYSE American, Nasdaq, and Cboe Exchange.
This latest round of approvals provides investors with a hedging mechanism to better manage their positions related to Ether products, according to the Commission’s approval statement.
“The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower-cost investing tool to gain exposure to the price of Ether,” the statement noted.
ETH Price Soars Over 14% on ETFs and Trump’s Tariff Pause
In response to the SEC’s approval of options on ETH ETFs and a recent 90-day pause on tariffs by former President Trump, the price of Ethereum surged by 14% within a single day. As of the most recent data, Ethereum is trading at $1,641.
According to Farside Investors, the SEC’s approval arrives at a challenging time for existing ETH ETF holders, who have grappled with a decline exceeding 50% year-to-date, affecting ETF flows, which have seen only four days of inflows since February 20.
Conversely, two -2x ETH ETFs have emerged as the most successful ETFs of 2025 thus far, as highlighted by Bloomberg analyst Eric Balchunas, who noted these products involve a 2x leveraged short position on ETH ETFs.
“The best performing ETF this year is the -2x Ether ETF $ETHD, up 247%. #2 is the other -2x Ether ETF. I was sure it would be $UVIX (2x VIX), but that’s #3. Brutal,” Balchunas tweeted.
— Eric Balchunas (@EricBalchunas) April 9, 2025
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