BlackRock’s Proposal for Ethereum ETF Options Trading
BlackRock recently submitted a proposal for the trading and listing of options on the iShares Ethereum Trust (ETHA), an Ethereum (ETH) spot exchange-traded fund (ETF). The proposal was submitted to the U.S. Securities and Exchange Commission (SEC) through the Nasdaq International Stock Exchange on August 6.
Nasdaq and BlackRock Leveraging Crypto Commodity ETF Experience
According to the document, the assets of the newly proposed iShares Ethereum Trust will consist solely of Ethereum and will be held by Coinbase. BNY Mellon will manage the cash assets. Interestingly, the trust will not engage in Ethereum staking to earn additional income.
Nasdaq aims to expand the range of Ethereum investment instruments and make cryptocurrency investments more accessible in traditional financial markets. While these stocks do not represent direct investment in Ethereum, they provide investors with an opportunity to participate in the Ethereum market through familiar public securities channels.
Options Trading on Ethereum ETFs
Options markets allow traders to buy or sell an asset at a specified price by a specific date. Options provide flexibility for traders to protect against potential losses or predict future asset prices. Nasdaq and BlackRock have prior experience listing options on other commodity ETFs, making the move to add spot cryptocurrency ETF options a significant development.
Bloomberg Intelligence ETF analyst James Seipart mentioned that the SEC’s final decision on adding options may be reached by April 9, 2025. Approval from the Options Clearing House (OCC) and the Commodity Futures Trading Commission (CFTC) will also play a crucial role in this process.
BlackRock’s Dominance in Spot ETFs
BlackRock is a prominent issuer of Bitcoin and Ethereum spot ETFs in the United States. Data shows that as of August 5, the net assets of BlackRock’s iShares Bitcoin Trust reached a substantial US$18.28 billion, making it the largest spot Bitcoin ETF. Additionally, the net assets of BlackRock’s iShares Ethereum Trust (ETHA) were US$568.65 million, ranking as the third largest spot Ethereum ETF in the U.S. market.
