- BlackRock and Nasdaq filed a proposal with the SEC to list and trade options on the iShares Ethereum Trust (ETHA)
- The proposal aims to provide investors with a tool to gain exposure to spot Ethereum and a hedging vehicle for Ethereum products
- Comments on the proposal are due in 21 days, with a final SEC decision expected in early April 2025
BlackRock and Nasdaq have proposed a rule change to the SEC to allow options trading on the iShares Ethereum Trust ETF. This would give investors more tools to gain exposure to and hedge against ether.
BlackRock and Nasdaq File Proposal
The world’s largest asset manager BlackRock and exchange operator Nasdaq filed a proposal with the SEC on Tuesday to list and trade options on the iShares Ethereum Trust ETF, which trades under the ticker ETHA.
In the filing, BlackRock and Nasdaq argue that “offering options on the Trust will benefit investors by providing them with an additional relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions.”
The ETF launched in May after being approved by the SEC alongside eight other Ethereum ETFs. It began trading last month.
Options Trading Would Start in Early 2025
The public has 21 days to submit comments on the proposal. If approved by the SEC, options trading would likely begin in early April 2025 according to Bloomberg Intelligence analyst James Seyffart.
The ability to trade options on the Ethereum ETF would give investors additional tools to express bullish or bearish views on ether. It could also allow them to hedge existing spot ether positions. The launch of options trading would be another milestone for the Ethereum ETF market.
Conclusion
The proposal from BlackRock and Nasdaq to allow options trading on the iShares Ethereum Trust ETF is the latest sign of growing institutional adoption of crypto assets. If approved, it would give investors more ways to gain exposure to the price of ether, the second-largest cryptocurrency after bitcoin. The launch of an Ethereum options market would mark another step towards mainstream acceptance of digital assets.
