BlackRock and Nasdaq File for Options Trading on Spot Ethereum ETF

• BlackRock and Nasdaq filed with the SEC, seeking options trading for ETHA.
• Ethereum ETFs show strong inflows despite market turbulence.

BlackRock and Nasdaq have filed with the SEC to add options trading to the iShares Ethereum Trust (ETHA). Final SEC approval is anticipated by April 9, 2025, with pending approvals from the OCC and CFTC. This move, disclosed in a regulatory filing, aims to enhance market dynamics and provide investors with extra tools for exposure to Spot Ethereum ETF.

The filing highlights that adding options to the ETHA will offer cost-effective and versatile investment strategies. Nasdaq’s experience with commodity ETFs, such as the iShares COMEX Gold Trust and iShares Silver Trust,  builds its confidence in expanding these to the crypto sector.

James Seyffart, an ETF analyst of Bloomberg shared that the SEC has a 21-day window for public comments on the proposal, with a final decision expected around April 9, 2025. This decision will also require approval from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).

Since spot ETH ETF’s launch on July 23, 2024, the iShares Ethereum Trust has seen substantial growth. ETHA’s assets under management (AUM) have increased to $521 million, tripling its market dominance from 3% to 9%. 

However, ETHE remains the largest in the sector with $4.77 billion in AUM. This development mirrors BlackRock’s Spot Bitcoin ETF surpassing Grayscale’s GBTC.

Ethereum’s Market Strength And Outlook

Despite a bearish trend, ETHA saw $48.73 million in inflows on August 5 and nears $900M inflows showing resilience amid market turbulence. The ETH market shows strong buying from both traditional and crypto investors. During the recent dip, 152.4K ETH was withdrawn from exchanges, indicating strong buying pressure. Whales bought over $331 million in ETH during the recent dip.

Technically, Ethereum is stabilizing around $2,500, with potential for a rebound. Despite bearish signals from the Moving Average Convergence Divergence (MACD) indicating ETH is oversold. Simple Moving Averages (SMA), and the Relative Strength Index (RSI) indicate that ETH might have bottomed and is set for a rally. In conclusion, options trading for iShares Ethereum Trust highlights cryptocurrency’s growing role in traditional markets.

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