Nasdaq Moves to Initiate Options Trading on Ethereum ETFs

CoinGrab Asia William
August 7, 2024
186 Views

Nasdaq has officially sought permission from the U.S. Securities and Exchange Commission (SEC) to introduce options trading for Ethereum exchange-traded funds (ETFs), aiming to broaden the trading strategies available to investors. The focus of this application, submitted on August 6, is on the BlackRock’s iShares Ethereum Trust (ETHA), which currently stands as the sole Ethereum ETF on Nasdaq’s roster.

This move comes on the heels of the recent approval of Ethereum ETFs, which have since garnered approximately $1.5 billion in net inflows. Of this, BlackRock’s iShares Ethereum Trust accounts for over $500 million.

Despite the burgeoning interest and market participation in Ethereum ETFs, the SEC has yet to green-light options trading for any cryptocurrency ETFs, including those for Bitcoin. These Bitcoin ETFs commenced trading in January and presently encapsulate around $50 billion in assets. Although requests from various options exchanges, including Nasdaq ISE, have been lodged, the SEC maintains that additional deliberation time is necessary before reaching a decision.

Options trading is instrumental for managing market risks and enabling sophisticated investment tactics. It is particularly favored by financial advisors and hedge funds for hedging against significant price fluctuations and crafting diversified investment approaches.

Should the SEC approve Nasdaq’s proposal, it could mark a significant evolution in the ETF landscape, particularly affecting how financial advisers manage these products.

Disclaimer: The projections and information presented here are for educational purposes only and should not be considered financial advice. CoinGrab.Asia assumes no responsibility for any losses resulting from the use of this data. Readers are encouraged to perform their own research and proceed cautiously before engaging in any related activities.

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Author CoinGrab Asia William

William, originally carving out a career in Singapore's structured finance sector, made a pivotal shift to follow his passion for the dynamic and often turbulent world of cryptocurrency and financial markets. Now a distinguished cryptocurrency journalist and market analyst, William has authored over 800 insightful articles, making a significant mark in the crypto journalism field. Driven by a keen interest in the underlying mechanisms of the crypto world, William specializes in on-chain analysis, which involves examining transactions recorded on blockchains to gauge market trends and sentiments. His expertise also extends to dissecting events that trigger substantial market movements, providing his readers and followers with a deeper understanding of what drives fluctuations in cryptocurrency values. William’s contributions to the crypto community go beyond mere reporting. He regularly publishes opinion pieces that offer thoughtful perspectives on the latest developments and trends shaping the cryptocurrency landscape. His work not only informs but also enriches the dialogue within the crypto space, offering both novices and seasoned investors valuable insights into the complexities of market dynamics.

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