SEC seeks more time to mull options on Ethereum ETFs
2025-02-08
Category: None

US regulators said they need more time to decide whether to permit the trading of options tied to Ether ETHUSD exchange-traded funds (ETFs), according to a Feb. 7 regulatory filing. 
The filing was a response to Nasdaq ISE’s July request for permission to list options contracts for BlackRock’s iShares Ethereum Trust (ETHA). The US Securities and Exchange Commission now has until April 2025 to reach a decision, per the filing. 
Nasdaq’s proposed rule change would apply exclusively to options on ETHA, which is the only Ether ETF listed on Nasdaq’s electronic exchange. Others are listed on the New York Stock Exchange’s Arca or Cboe.
Creating an options market for ETH ETFs is an important step toward widespread adoption. Spot Ether ETFs were listed in July 2024 and have proceeded to attract approximately $9 billion in net assets, according to data from The Block.
Options are contracts granting the right to buy or sell — “call” or “put,” in trader parlance — an underlying asset at a certain price. 

Bitcoin ETF options pave the way
Options on spot Bitcoin BTCUSD ETFs started trading in November. On the first day of listing, options contracts on BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw almost $2 billion in total exposure.
Investment managers expect the US expansion of cryptocurrency ETF options to accelerate institutional adoption and potentially unlock “extraordinary upside” for coin holders.
In September, the SEC greenlighted Nasdaq’s electronic securities exchange to list options on IBIT. It was the first time the agency approved options on spot BTC ETFs for US trading. 
Then, in November, the Commodity Futures Trading Commission and the Options Clearing Corporation also greenlighted BTC ETF options, clearing the final hurdle for exchanges to list the financial derivatives products.
US President Donald Trump — who has promised to turn the US into the “world’s crypto capital” — is tapping crypto-friendly leaders to head financial regulators. This has raised hopes throughout the industry for speedy approvals for proposed crypto financial products.
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