SEC Approves Ethereum ETFs for Options Trading on Nasdaq and NYSE
The U.S. Securities and Exchange Commission (SEC) has officially approved options trading for spot Ethereum ETFs from multiple asset managers. This move opens up additional financial avenues for investors looking to engage with Ethereum-related assets, broadening opportunities within the digital asset market. Nasdaq ISE, LLC and NYSE American LLC are now authorized to facilitate these new trading options.
Approval for Multiple Ethereum-Related Products
The SEC’s approval extends to options on BlackRock’s iShares Ethereum Trust through Nasdaq. Additionally, NYSE can now offer options on several Ethereum-based products, including the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust. This decision affirms that the modifications comply with the standards outlined in the Securities Exchange Act, specifically Section 6(b)(5), which governs exchanges’ operations. The approval marks a significant milestone for Ethereum, reflecting its increasing integration into mainstream financial markets.
Analysts Predict Further Product Innovation
Notably, this approval builds on the SEC’s decision nearly a year ago to approve eight spot Ethereum ETFs. The latest move further supports the growing demand for Ethereum-linked financial instruments, particularly options, as more companies look to expand their product offerings. Bloomberg Intelligence’s ETF analyst, James Seyffart, had anticipated this approval. He noted that the decision aligns with expectations for the launch of Ethereum-based financial products. Nate Geraci, president of the ETF Store, also highlighted that more launches will follow. Geraci mentioned strategies like covered call and buffer Ethereum ETFs, which may become more common as firms look to cater to the increasing demand for diverse Ethereum investment products.
CBOE and NYSE Push for Staking in Ethereum ETFs
Meanwhile, other exchanges are also moving to integrate Ethereum’s proof-of-stake mechanism into their offerings. The Chicago Board Options Exchange (CBOE) recently filed a 19b-4 request with the SEC to include staking services in Fidelity’s Ethereum Fund (FETH). By incorporating staking, the fund aims to generate higher returns for investors by engaging in Ethereum’s network validation process. Not far behind, the New York Stock Exchange (NYSE) had requested permission from the SEC to add staking capabilities to the Grayscale Ethereum ETFs. If granted, this would allow investors to stake Ethereum within the ETFs, earning passive rewards as part of Ethereum’s validation mechanism.
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