The U.S. Securities and Exchange Commission (SEC) has approved options trading for several spot Ethereum ETFs. This regulatory green light is seen as a major step toward expanding the range of tools available to institutional investors interested in ETH.
Options Trading To Enhance Strategy Flexibility
On April 9, 2025, the SEC approved proposed rule changes allowing Nasdaq to list options contracts on BlackRock’s iShares Ethereum Trust (ETHA), Bitwise’s Ethereum ETF, Grayscale Ethereum Trust (ETHE), Grayscale Mini Trust, and Fidelity’s Ethereum Fund (FETH).
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In its response to Nasdaq, the SEC stated:
“Options on the Trust will provide investors with a relatively lower-cost tool for exposure and hedging related to spot Ether.”
Inflows Into Ethereum ETFs Remain Modest
Despite the regulatory nod, institutional demand for Ethereum ETFs has been underwhelming. ETHA currently manages $1.8 billion in assets, down 56% since the start of the year. Meanwhile, most capital continues flowing into Bitcoin ETFs.
Crypto Regulation Shifting Under Trump Administration
Since Donald Trump’s return to office, the SEC has softened its stance on crypto enforcement. Investigations into Coinbase, Gemini, Uniswap Labs, and OpenSea have been quietly closed.
At the same time, U.S. lawmakers are advancing two key bills: the STABLE Act and the GENIUS Act, both aimed at regulating stablecoin issuers and clarifying the legal structure of the crypto market. A broader regulatory framework is expected later this year.
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