In April 2025, the U.S. Securities and Exchange Commission (SEC) approved options trading for several Ether-based ETFs. This decision may enhance Ether's investment appeal among institutional traders.
What are ETF Options?
ETF options are tools that allow investors to hedge against asset declines. According to the SEC, options on such trusts will provide investors with additional opportunities for investment and protection against risks related to Ether-related products and positions.
Impact on the Ether Market
Although investments in Ether funds remain relatively low compared to interest in Bitcoin, the approval of options is seen as a significant step towards increasing interest from institutional investors. Currently, BlackRock's ETHA fund has assets worth $1.8 billion, down 56% since the beginning of the year.
Shifts in Cryptocurrency Regulation
With the new presidential administration in the U.S., the SEC is signaling a reduction in its oversight of the crypto industry, closing investigations against companies like Gemini and Coinbase. At the same time, regulators are advancing legislative initiatives concerning stablecoins, including the passage of the STABLE Act.
Thus, the approval of options trading on Ether ETFs opens new opportunities for investors, despite the current relatively low attractiveness of Ether compared to Bitcoin.
