BlackRock Proposes Options Trading on iShares Ethereum Trust (ETHA)
BlackRock recently submitted a proposal for the trading and listing of options on the iShares Ethereum Trust (ETHA), an Ethereum (ETH) spot exchange-traded fund (ETF). The proposal was submitted to the U.S. Securities and Exchange Commission (SEC) through the Nasdaq International Stock Exchange on August 6.
Nasdaq and BlackRock Tap into Crypto Commodity ETF Experience
According to the document, the assets of the newly proposed iShares Ethereum Trust will consist solely of Ethereum and will be held by Coinbase. Meanwhile, BNY Mellon will have cash assets. The trust will not engage in Ethereum staking to earn additional income.
Nasdaq aims to expand the range of Ethereum investment instruments and make cryptocurrency investments more accessible in traditional financial markets. These stocks provide investors with an opportunity to invest in Ethereum through public securities markets, familiar to existing investors.
Options markets allow traders to buy or sell an asset at a specified price by a specific date. Options are often used to protect against potential losses or predict the future price of an asset, offering flexibility for traders.
Experience in Listing Options on Commodity ETFs
Nasdaq and BlackRock have experience listing options on other commodity ETFs, such as the iShares Comex Gold Trust and the iShares Silver Trust. The addition of spot cryptocurrency ETF options represents a significant development in this area. Bloomberg Intelligence ETF analyst James Seipart commented that the SEC’s final decision may be made around April 9, 2025.
“The SEC is not the only decision-maker for adding options. Approval from the Options Clearing House (OCC) and the Commodity Futures Trading Commission (CFTC) is also required,” Seifert added.
BlackRock’s Leading Role in Bitcoin and Ethereum ETFs
BlackRock is a leading company issuing Bitcoin and Ethereum spot ETFs in the United States. As of August 5, the net assets of BlackRock’s iShares Bitcoin Trust (IBIT) reached US$18.28 billion, making it the largest spot Bitcoin ETF. The net assets of BlackRock’s iShares Ethereum Trust (ETHA) were US$568.65 million, making it the third largest spot Ethereum ETF in the U.S. market.
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