BlackRock’s Proposal for Options Trading on the iShares Ethereum Trust
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, submitted to the U.S. Securities and Exchange Commission (SEC) through the Nasdaq International Stock Exchange on August 6, aims to expand the range of Ethereum investment instruments and make cryptocurrency investments more accessible in traditional financial markets.
Nasdaq and BlackRock’s Crypto Commodity ETF Experience
The newly proposed iShares Ethereum Trust will hold assets consisting solely of Ethereum, held by Coinbase, with cash assets held by BNY Mellon. The trust will not engage in Ethereum staking to earn additional income. Nasdaq and BlackRock have experience listing options on other commodity ETFs, such as the iShares Comex Gold Trust and the iShares Silver Trust, making the move to add spot cryptocurrency ETF options an important development.
Options markets allow traders to buy or sell an asset at a specified price by a specific date, providing flexibility compared to futures. Bloomberg Intelligence ETF analyst James Seipart commented on the filing to add options to the Ethereum ETF, noting that the final decision by the SEC, OCC, and CFTC may be made around April 9, 2025.
BlackRock’s Dominance in Bitcoin and Ethereum Spot 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.
In conclusion, the proposal by BlackRock for options trading on the iShares Ethereum Trust signals a significant development in the cryptocurrency investment landscape, offering investors more opportunities to engage with Ethereum in traditional financial markets.
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