BlackRock and Nasdaq plan to launch Ethereum spot ETF option trading

According to The Block, Nasdaq and BlackRock, the world's largest asset management company, plan to list and trade options for their Ethereum spot exchange traded fund (ETF).

In a document released on Tuesday (6th) to the website of the US Securities and Exchange Commission (SEC), BlackRock and Nasdaq proposed a rule change to allow for the listing and trading of iShares Ethereum Trust Fund (stock code: ETHA) options. The document states:

The exchange believes that providing the option of this trust will benefit investors by offering them an additional, relatively low-cost investment tool to gain exposure to Ethereum spot and a hedging tool to meet their investment needs for Ethereum products and positions

BlackRock's Ethereum spot ETF, along with eight other ETFs, was approved in May and began trading on July 23rd.

The comment period for this proposal is 21 days. Bloomberg Intelligence analyst James Seyfart stated in an article that the SEC's final ruling on the proposal may be made in early April 2025.

Nate Geraci, President of The ETF Store, an investment advisory firm, stated earlier today that Bitcoin and Ethereum spot ETFs still face significant regulatory barriers, with no in kind creation/redemption mechanism, no option trading, and Ethereum ETFs cannot participate in staking. Despite this, these products are still challenging and breaking records in the ETF industry, which should indicate investors' demand.