Nasdaq Seeks Approval for Ethereum ETF Options Trading
Nasdaq has formally requested permission from U.S. regulators for Ethereum ETF Options Trading, signaling the continued evolution of digital asset exchanges. The focus of the proposal is the iShares Ethereum Trust, managed by BlackRock and traded exclusively on the Nasdaq exchange. This decision underscores investors’ increasing desire to expand their exposure to cryptocurrency products amidst high price volatility.
Growing Interest in Ethereum-Based Financial Products
In July of this year, Nasdaq included the iShares Ethereum Trust, marking a significant development for Ethereum-based financial products. The ETF has attracted net inflows of nearly $1.5 billion since its inception, showcasing positive trends in investor interest and demand. Recently, Nasdaq filed a document proposing an option trade on this particular ETF to attract more investors.
Despite the widespread interest in ETH-related tokens, the U.S. Securities and Exchange Commission (SEC) remains cautious. The SEC has yet to approve options trading in cryptocurrency ETFs, including the Bitcoin ETF launched in January, which currently manages approximately $50 billion in assets. The regulator’s approach is driven by market volatility and the necessity for a more thorough analysis, especially in light of recent cryptocurrency price fluctuations.
Rise of Cryptocurrency ETFs in Institutional Portfolios
Cryptocurrency ETFs are gradually making their way into the portfolios of financial advisory services and hedge funds. Morgan Stanley, with over $3.75 trillion in assets, will recommend a Bitcoin ETF to 15,000 advisors. Additionally, Europe’s fourth-largest hedge fund recently acquired $500 million worth of Bitcoin ETFs, demonstrating institutional interest. The continuous flow of data from the financial advisory sector regarding investments in cryptocurrency products supports this growing trend.
Nasdaq’s push for Ethereum ETF Options trading comes at an opportune time, aligning with the significant demand and interest in financial instruments connected to digital assets.
Also read: End of July ETF update: BlackRock leads with $20.02B inflows, Grayscale sees significant outflows
