BlackRock and Nasdaq have filed with the SEC to introduce options for the iShares Ethereum Trust (ETHA), a spot Ethereum ETF. The proposal aims to improve market efficiency and provide cost-effective hedging strategies.
Nasdaq noted its experience with similar options on other BlackRock commodity ETFs. The SEC has 21 days to comment, with a final decision expected by April 9, 2025. The OCC and CFTC also need to approve the move.
Since launching in July, ETHA’s market share has risen to 9%, with assets over $521 million, though Grayscale’s ETHE ETF still leads with $4.77 billion. A similar trend occurred with Bitcoin ETFs, where BlackRock’s IBIT overtook Grayscale’s GBTC.
In July, the US Securities and Exchange Commission (SEC) approved ether-linked exchange-traded funds (ETFs) from firms like Franklin Templeton, VanEck, Bitwise, and 21Shares. These options allow holders to buy or sell assets at a predetermined price by a set date.
The filing states that offering options on these ETFs will provide investors with a lower-cost tool for gaining exposure to spot ether. The SEC supervises the necessary technical rule changes for exchanges to list these options.
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