BlackRock and Nasdaq Seek Approval for Ethereum ETF Options
BlackRock and Nasdaq have taken a significant step by proposing to introduce options to the iShares Ethereum Trust (ETHA), an Ethereum exchange-traded fund managed by BlackRock. This move was detailed in a filing submitted to the US Securities and Exchange Commission (SEC).
The filing emphasized the potential benefits of listing and trading options on the Trust, stating that it would enhance market mechanisms, promote a free and open market, and safeguard investor interests by offering them more opportunities to leverage options on an ETF based on spot ether. Nasdaq highlighted its existing listing of options on other commodity ETFs structured as trusts, citing BlackRock products like the iShares COMEX Gold Trust and the iShares Silver Trust.
Bloomberg ETF analyst James Seyffart noted on X (formerly Twitter) that the SEC has a 21-day period to comment on the proposal, with a final decision expected around April 9, 2025. However, approval from not only the SEC but also the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC) is required for this joint initiative by Nasdaq and BlackRock.
ETHA, BlackRock’s Ethereum ETF, has seen a rise in inflows. Since the launch of spot Ethereum ETFs in the US on July 23, ETHA’s dominance has grown from 3% to 9%, with assets under management (AUM) exceeding $521 million. Despite this growth, Grayscale’s trust turned ETF, ETHE, maintains a substantial lead with an AUM of $4.77 billion, almost nine times larger than ETHA.
A similar trend occurred after the launch of spot Bitcoin ETFs in the US, where BlackRock’s IBIT gradually surpassed Grayscale’s GBTC in size and influence.
In conclusion, the collaboration between Nasdaq and BlackRock to introduce options to the iShares Ethereum Trust marks a significant development in the cryptocurrency market, potentially offering investors enhanced opportunities and strategies in the evolving landscape of digital assets.
