The U.S. Securities and Exchange Commission (SEC) has approved options trading for several spot Ethereum ETFs, providing new opportunities for institutional investors.
SEC Approval and New Investment Tools
The SEC has granted exchanges like Nasdaq the ability to offer options on funds such as BlackRock’s iShares Ethereum Trust, Bitwise’s Ethereum ETF, Fidelity’s Ethereum Fund, and Grayscale’s Ethereum Trusts. This decision follows an extensive regulatory review that began when BlackRock filed its request in July 2024.
Ether Market and Declining Assets Under Management
Despite the approval of spot Ether ETFs last summer, inflows into these funds have significantly lagged behind those of Bitcoin ETFs. For example, BlackRock’s ETHA currently holds $1.8 billion in assets under management, which has fallen by more than 50% since the start of 2025.
Regulatory Changes and Crypto Market Development
The SEC's recent approval comes amid a reevaluation of the agency's stance on digital assets under President Donald Trump’s administration. In recent months, the SEC has pulled back from several high-profile enforcement actions against companies like Coinbase, Gemini, and Uniswap Labs. Additionally, lawmakers in both houses of Congress are advancing stablecoin legislation that is nearing the final stages of markup.
The approval of options trading for spot Ethereum ETFs may lead to increased interest from institutional investors and further development of the cryptocurrency market.
