Nasdaq and BlackRock have filed with the Securities and Exchange Commission (SEC) to list and trade options for BlackRock’s spot Ethereum exchange-traded fund (ETF).
Notably, a final decision from the SEC is anticipated by early April 2025. This news notably comes on the heels of an impressive performance by BlackRock’s spot Ethereum ETF, which was approved in May and began trading in July.
Now, the crypto ETF manager is seeking a rule change to allow the listing and trading of options contracts for the iShares Ethereum Trust. For context, Options grant the holder the right to purchase or sell an asset, like a stock or an exchange-traded product, at a specific price before a designated expiration date.
Details of the ETF and Trading Proposal
According to the filing, the ETF aims to track Ethereum’s performance before expenses and liabilities, offering investors an alternative to direct Ethereum investment via public securities markets.
Managed by BlackRock Fund Advisors, the ETF’s assets include Ethereum, which is held by Coinbase Custody Trust Company, and cash, which The Bank of New York Mellon manages. The ETF simplifies Ethereum investment by bypassing the complexities of direct acquisition and trading.
The proposal also suggests expanding the list of ETFs eligible for options trading to include BlackRock’s ETF. It highlights the Trust’s structure, emphasizing the secure custody of Ethereum assets and the administrative roles involved. Additionally, the ETF operates under a trust agreement with Wilmington Trust, which serves as the Delaware Trustee.
Expert Specifies Dates
Adding to the anticipation, Bloomberg analyst James Seyffart noted the SEC’s decision is expected around April 9, 2025. The approval process involves multiple regulatory bodies, ensuring comprehensive oversight.
For instance, the SEC’s decision will consider input from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
Nasdaq and BlackRock's filing to add options on Ethereum ETFs has hit the SEC site. Final SEC decision on this from SEC likely to be around April 9th, 2025.
(SEC is not the only decision maker on adding options here. Also need signoff from OCC & CFTC) https://t.co/K4HunUPp7S pic.twitter.com/5kQH0mljTz
— James Seyffart (@JSeyff) August 6, 2024
This filing coincides with BlackRock’s spot Ethereum ETF seeing $109.9 million in inflows on August 6, bringing total inflows to $869.8 million since its launch on July 23.
According to Farside Investors, this marks the ETF’s third biggest inflow day as investors sought to capitalize on Ethereum’s 18% price drop on August 5. The ETF ranks among the top six best-performing ETFs launched in 2024, with four of the others being spot Bitcoin ETFs.
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