In a move that could significantly impact the cryptocurrency market, BlackRock and Nasdaq have jointly filed a proposal with the U.S. Securities and Exchange Commission (SEC) to list and trade options on BlackRock’s spot Ethereum exchange-traded fund (ETF), the iShares Ethereum Trust (ETHA).
The filing states that the addition of options “will remove impediments to and perfect the mechanism of a free and open market” by providing investors with greater opportunities to realize the benefits of utilizing options on an Ethereum ETF, including cost efficiencies and increased hedging strategies.
Nasdaq has previously listed options on other commodity ETFs structured as trusts, such as BlackRock’s iShares COMEX Gold Trust and iShares Silver Trust. However, the SEC has not yet approved options trading on Bitcoin ETFs, which were listed in January.
The SEC has 21 days to provide comments on the matter, with a final decision deadline likely to be around April 9, 2025. The Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) also need to approve the requirement.
Since its launch on July 23, ETHA has seen its dominance triple from 3% to 9%, with assets under management (AUM) sitting at over $521 million. However, Grayscale’s Ethereum Trust (ETHE) still holds a significant lead with an AUM of $4.77 billion.
The filing comes amid growing institutional interest in Ethereum, with BlackRock CEO Larry Fink recently stating that he “sees value in having an Ethereum ETF” and that these are “just stepping stones towards tokenization”. However, the approval of a spot Ethereum ETF may face regulatory hurdles due to potential concerns over the classification of Ether as a security.
