SEC Grants Approval for Ether ETF Options Trading in Regulatory Shift

YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) approved options trading on multiple spot Ether ETFs on April 9, 2025. The decision allows exchanges like Nasdaq to list and trade options linked to major Ethereum ETFs such as BlackRock’s iShares Ethereum Trust (ETHA), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), Fidelity Ethereum Fund (FETH), and Bitwise Ethereum ETF (ETHW).

The SEC reviewed a proposal first submitted by BlackRock on July 22, 2024, seeking to add options trading to its spot Ether product. The SEC’s official response stated that Nasdaq proposed changes to its rules to allow the listing of options tied to ETHA and similar funds. The proposal met all legal requirements for approval.

By approving Ether ETF options, the SEC added a financial tool for investors already exposed to spot Ether ETFs. These options can be used to protect investments or manage risk connected to Ethereum ETF positions. According to the filing, the tools offer a lower-cost way to gain exposure to Ether without directly buying the asset.

Options Explained for Institutional and Retail Use

Ether ETF options allow investors to hedge against price changes in Ethereum ETFs. These options provide contracts that let traders bet on price directions or reduce the impact of losses. The SEC noted that adding options will support investor needs for exposure and protection in the Ethereum ETF market.

The approval came months after the SEC allowed spot Ether ETFs to begin trading in July 2024. Since then, inflows into these funds have remained lower than expected. BlackRock’s ETHA, the largest of the approved products, currently holds $1.8 billion in assets, reflecting a 56% decrease since the beginning of the year, based on VettaFi data.

So far, most institutional investment has gone into Bitcoin ETFs. Ethereum-based products have seen slower adoption. The new options trading may change that trend, as it allows more ways to interact with Ether ETFs. However, trading volume remains moderate compared to Bitcoin funds.

Trump-Era SEC Eases Crypto Oversight, Affects Ether ETF Options

The SEC’s decision aligns with changes seen under President Donald Trump’s administration. Since Trump took office, the agency reduced its enforcement activity in the crypto sector. Moreover, legal experts at Harvard Law School Forum on Corporate Governance said they were surprised by the speed of this shift.

Several crypto firms that were under investigation now face no regulatory actions. The SEC closed cases involving Coinbase, Gemini, Uniswap Labs, and OpenSea. These closures mark a major change in the SEC’s treatment of crypto platforms and product developers.

While past enforcement was more aggressive, the current approach is more open to approving financial instruments like Ethereum ETF options. Legal and market watchers note this regulatory shift is now affecting how fast the industry sees approvals and product launches.

As the SEC approved Ether ETF options, U.S. lawmakers also made progress on several crypto bills. The House Financial Services Committee moved forward with the STABLE Act, which would create a legal framework for stablecoin use in the United States. It outlines how stablecoins should be issued and used under federal law.

The Senate Banking Committee also passed the GENIUS Act, which targets how companies issue and manage stablecoins. This bill focuses on stablecoin issuer transparency and compliance rules. Both bills are part of a broader effort to shape the crypto legal structure.

In parallel, Congress is drafting a crypto market structure bill. Specifically, the bill aims to clarify which agency—the SEC or the CFTC—should regulate different digital assets. Notably, lawmakers expect the draft to be finalized before the end of 2025. These legal developments form part of the environment where Ether ETF options have now been approved.