- The US SEC has approved options trading for Bitwise, Grayscale, and BlackRock ETH ETFs.
- This approval allows investors to gain exposure to Ethereum through regulated options.
- A 25,000-contract limit per ETF to prevent manipulation and ensure market stability.
In a significant development for the crypto industry, the U.S. Securities and Exchange Commission (SEC) approved options trading for the Ethereum spot exchange-traded funds (ETF) on April 9, 2025. The ETF was filed by Nasdaq ISE on July 22, 2024, and then by NYSE on November 8, 2024. This approval also applies to several spot Ether ETFs, including BlackRock’s iShares Ethereum Trust (ETHA), Bitwise Ethereum ETF (ETHW), Grayscale’s Ethereum Trusts (ETHE and ETH), and Fidelity’s Ethereum Fund (FETH). These ETFs, trading from July 2024, have gained the added utility of option contracts that let investors hedge risk or expand returns.
According to the SEC’s statement, options on these ETFs will provide investors with an additional and relatively low-cost investing tool to gain exposure to spot ETH. This approval also introduces flexibility, enabling investors to mitigate risks without owning the cryptocurrency. The SEC has also emphasized that the options market will operate under strict guidelines. Further, to minimize market manipulation, the agency has set a position and exercised a limit of 25,000 contracts per ETF.
This milestone aligns with the SEC’s approval of options trading for spot Bitcoin ETFs in January 2024, which saw significant trading activity, including nearly $2 billion in exposure for BlackRock’s iShares Bitcoin Trust, as reported by Goldman Sachs. Analysts expect Ethereum ETF options to attract similar institutional attention, although ETH-focused funds have seen softer inflows. The timing of this approval reflects a broader regulatory shift under Trump’s administration.
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The SEC has notably softened its once-aggressive stance on digital assets and pivoted to more crypto-friendly policies that foster innovation. However, some see this shift as a political pressure and the rising influence of crypto in mainstream finance. Further, the SEC’s approval on options trading for ETH ETF also faced mixed reactions from the crypto community, where some view it as a sign of growth, while others voice caution.
Also, Ethereum had a turbulent run the past week, hitting a two-year low of around $1,500. Yet, optimism remains strong as some view this dip as a buying opportunity. Bitwise CIO Matt Hougan predicts that Ethereum ETFs could attract $15 billion in assets by December 2025, potentially pushing ETH prices above $5,000.
On a final note, the SEC’s decision marks a pivotal step toward deeper institutional integration of Ethereum, which could bring more liquidity and volatility to the crypto community and perhaps open doors for other tokens like XRP and Solana.
