The United States Securities and Exchange Commission (SEC) announced that it requires more time to consider the approval of trading options on Ethereum (ETH) exchange-traded funds (ETFs). This decision follows a regulatory filing dated February 7, which responded to a request made by Nasdaq ISE in July to list options contracts for BlackRock’s iShares Ethereum Trust (ETHA). The agency is expected to make its decision by April 2025.
Nasdaq’s proposal solely pertains to options on ETHA, the only Ethereum ETF available on its electronic exchange, as alternative Ether ETFs are listed on the New York Stock Exchange’s Arca and Cboe. The creation of options markets for Ethereum ETFs is seen as a crucial step toward mainstream adoption. Since their introduction in July 2024, spot Ether ETFs have managed to accumulate approximately $9 billion in net assets, reflecting significant interest in the market.
Options, in this context, refer to contracts that grant the right to either buy or sell an underlying asset at a predetermined price, known as “call” or “put” options respectively.
This scrutiny over Ethereum ETF options comes after the successful launch of options on Bitcoin (BTC) ETFs. The debut of these Bitcoin options occurred in November, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) witnessing almost $2 billion in exposure on the first day.
The expansion of cryptocurrency ETF options in the U.S. is anticipated to bolster institutional adoption and offer substantial benefits to cryptocurrency holders. In September, the SEC approved options for Nasdaq’s electronic securities exchange to list on IBIT, marking a milestone for Bitcoin ETFs in the U.S. as the Commodity Futures Trading Commission and the Options Clearing Corporation gave their approval in November, thereby paving the way for these derivatives.
U.S. President Donald Trump has pledged to transform the country into the “world’s crypto capital,” a vision supported by appointing crypto-friendly leaders to head financial regulatory bodies, which has raised optimism within the industry for swift approvals of proposed crypto financial products.
