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BlackRock Spot Ethereum ETF Now Seeks SEC Approval for Options Trading

Key Points:

BlackRock and Nasdaq have proposed a rule change to allow options trading on BlackRock spot Ethereum ETF.
The SEC will oversee the technical rule changes for the ETF options.
However, the agency has not yet approved options trading for spot Bitcoin ETFs.

A regulatory filing on Tuesday revealed BlackRock and Nasdaq were recommending an allowance for options trading in the BlackRock spot Ethereum ETF.

Options Trading for BlackRock Spot Ethereum ETF Recommended

The move comes after the SEC recently approved Ethereum ETFs from major firms, including Franklin Templeton and VanEck.

The proposed iShares Ethereum Trust would hold only Ethereum in Coinbase custody, while cash would be managed by the Bank of New York Mellon. BlackRock spot Ethereum ETF would not stake its Ether, thus remaining a passive investment.

Options provide an investor with the right to buy or sell an asset at a fixed price over a specified period. Nasdaq’s move is aimed at providing investors with an economical way of acquiring BlackRock spot Ethereum ETF exposure, thus making this ETF more attractive and competitive. Nasdaq had listed options on other commodity ETFs structured as trusts, such as BlackRock’s iShares COMEX Gold Trust and iShares Silver Trust.

Options for ETFs Still Under SEC Review

The filing notes that the SEC oversees the changes that need to be made to the rule to list options on the new trust. Bloomberg ETF analyst James Seyffart noted that the SEC has 21 days in which it can comment, adding that a final decision is expected on April 9, 2025.

In addition to the SEC, the filers need approval from the Office of the Comptroller of the Currency and the Commodity Futures Trading Commission.

On the other side, the SEC has not yet approved options trading for spot Bitcoin ETFs, which only started trading in January, now holding around $50 billion worth of Bitcoin. The SEC says more time needs to be devoted to considering options trading for Bitcoin ETFs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.