The U.S. Securities and Exchange Commission (SEC) has officially approved options trading for several spot Ether exchange-traded funds (ETFs), a step that could enhance Ether’s appeal among institutional investors.
On April 9, the SEC approved a rule change after reviewing a proposed rule modification that Nasdaq filed with the SEC for BlackRock’s iShares Ethereum Trust (ETHA) on July 22, 2024. The SEC also approved Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini (ETH Mini), and Fidelity Ethereum Fund (FETH).
The agency stated, “Options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot ether,” while mentioning that it would also offer a hedging vehicle to accommodate market risk.
Bloomberg analyst James Seyffart tweeted on the news saying, “Ethereum ETF options approved. Was 100% expected. Today was final deadline.”
The price of Ethereum dropped to $1415 recently; however, it jumped to $1595 following the announcement. Trump has also paused on all reciprocal tariffs for 90 days, excluding China. The whole crypto market reacted positively after this positive economic shift.
This regulatory shift comes amid broader changes at the SEC under President Donald Trump’s administration. Since Trump’s election, the commission has signaled a more lenient stance towards the crypto sector.
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