The U.S. Securities and Exchange Commission (SEC) has approved the trading of options tied to spot %Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs).
The Wall Street regulator has approved a filing from Nasdaq ISE that asked for permission to list options contracts on BlackRock’s iShares Ethereum Trust (ETHA).
Options are a popular trading vehicle to leverage and hedge risk and are highly prized by large institutional investors who are looking to control large blocks of shares.
The SEC faced a deadline of April 9 to decide on Ethereum ETF options trading, and financial markets had priced in the approval.
The options apply specifically to BlackRock’s iShares Ethereum Trust ETHA, meaning that BlackRock’s product is the only spot Ethereum ETF that options can currently be traded on.
However, several other asset managers and funds have also applied to offer Ethereum ETF options trading and those applications are expected to be approved by the regulator.
Ethereum is currently trading at $1,600 U.S., having fallen 52% so far this year.
