BlackRock recently filed a proposal for options trading and listing on its spot Ethereum (ETH) exchange-traded fund (ETF), iShares Ethereum Trust (ETHA). The proposal was submitted to the US Securities Exchange and Commission (SEC) on August 6 via the Nasdaq International Securities Exchange.
According to the filing, the newly proposed iShares Ethereum Trust assets will consist solely of ETH, which Coinbase will hold, while the Bank of New York Mellon will hold the cash assets. Additionally, the trust will not engage in Ethereum staking to earn additional income. Nasdaq aims to broaden investment tools for Ethereum, making crypto investments more accessible within traditional financial markets. Although these shares do not equate to a direct investment in ETH, they enable investors to gain exposure to Ethereum through the public securities market.
- The options market allows traders to buy or sell an asset, like a stock or an ETF, at a specified price before a certain date.
- Options provide flexibility since the trader can decide whether to execute the trade, unlike futures.
- Nasdaq and BlackRock have notable experience in listing options on other commodity ETFs, including iShares COMEX Gold Trust and iShares Silver Trust.
James Seyffart, an ETF analyst at Bloomberg Intelligence, commented that the SEC’s final decision on adding options on Ethereum ETFs will likely be around April 9, 2025. He also noted that approvals are needed from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC). BlackRock is a prominent issuer of spot Bitcoin and Ethereum ETFs in the US, with its iShares Bitcoin Trust (IBIT) being the largest spot Bitcoin ETF, holding net assets of $18.28 billion as of August 5, according to SoSo Value data.
