SEC approves options trading for Ether ETFs

The U.S. Securities and Exchange Commission (SEC) has approved options trading for multiple spot Ether (CRYPTO:ETH) exchange-traded funds (ETFs), a move expected to broaden institutional interest in Ethereum.

The approval, issued on April 9, applies to ETFs including BlackRock’s iShares Ethereum Trust, Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Fidelity Ethereum Fund.

The SEC stated that options on these ETFs provide investors with lower-cost tools to gain exposure to Ether and offer hedging mechanisms for managing risks associated with Ether-related products.

The decision follows the SEC's earlier approval of spot Ether ETFs in May 2024, marking another milestone in the regulatory acceptance of cryptocurrency-based financial products.

While net inflows into Ether ETFs have been modest compared to Bitcoin funds, the introduction of options trading is seen as a step toward enhancing Ether's investment appeal.

BlackRock’s iShares Ethereum Trust currently holds $1.8 billion in net assets, though this represents a decline of 56% since the start of the year.

The approval comes amid shifting regulatory tides under President Donald Trump’s administration, which has signaled a more favorable stance toward cryptocurrency.

The SEC has recently closed investigations into several crypto companies, including Coinbase and Gemini, reflecting a softer enforcement approach.

On the legislative front, Congress has advanced key bills such as the STABLE Act and GENIUS Act to regulate stablecoins and their issuers.

Lawmakers are also working on comprehensive crypto market structure legislation expected to be finalized this year.

At the time of reporting, the Ethereum (ETH) price was $1,606.73.