Nikolas Sargeant
The US Securities and Exchange Commission (SEC) has given the green light for listing and trading options on several spot Ethereum ETFs, according to multiple Wednesday filings. Investors can now trade options linked to BlackRock's iShares Ethereum Trust (ETHA), Bitwise Ethereum ETF, Grayscale's Ethereum Trust, and Ethereum Mini Trust.
Options contracts provide buyers the right to purchase or sell the underlying asset—in this case, ETH—at a predetermined price within a specific timeframe.
Bloomberg Intelligence ETF analyst James Seyffart described the approval as "100% expected," noting the Commission had until April 9 to make its decision. Nate Geraci, president of the ETF Store, predicted further expansion in this area, stating on X: "Like w/ BTC ETFs, expect to see a bunch of new launches from issuers. Covered call strategy ETH ETFs, buffer ETH ETFs, etc."
SEC's Path to Ethereum Options Approval
Wednesday's approval follows an initial postponement after Nasdaq ISE filed for ETHA options on July 22, 2024. The delay came amid concerns from advocacy group Better Markets, which cautioned the SEC about potential risks associated with options trading on cryptocurrency ETFs due to their high volatility.
This development follows the SEC's October approval of options trading on 11 Bitcoin ETFs across major exchanges including NYSE American, Nasdaq, and Cboe Exchange.
In its approval documentation, the Commission noted that these options provide "a hedging vehicle for investors to meet their needs in connection with Ether-related products and positions," adding that "offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower-cost investing tool to gain exposure to the price of Ether."
ETH Price Jumps as Market Responds to Regulatory News
Ethereum's price surged 14% in the 24 hours following the SEC's options approval announcement and the recent 90-day pause on Trump's tariffs. According to Coinmarketplace data, Ethereum is trading at $1,641 at press time.
The approval comes during a challenging period for ETH ETF holders, with Farside Investors data showing funds down over 50% year-to-date. This downtrend has affected ETH ETF flows, which have experienced only four days of positive inflows since February 20.
Interestingly, Bloomberg analyst Eric Balchunas noted that the best-performing ETFs of 2025 so far are two -2x ETH ETFs, which represent leveraged short positions on ETH ETFs.
