Nasdaq and BlackRock File to List and Trade Options for BlackRock’s Spot Ethereum ETF
Nasdaq and BlackRock have jointly filed a request with the Securities and Exchange Commission (SEC) to list and trade options for BlackRock’s Spot Ethereum ETF. The SEC’s final decision is anticipated in early April 2025. This development follows the impressive performance of BlackRock’s Ethereum exchange-traded fund (ETF).
Currently, the crypto-focused investment fund manager aims to amend the rules to allow the listing and trading of options for the iShares Ethereum Trust. Options provide the holder the right to buy or sell an asset, such as stocks or ETFs, at a predetermined price before a specified expiration date.
Details of the ETF and Proposed Trading Rules
The fund aims to track the performance of Ethereum, excluding expenses and liabilities, offering investors an alternative to direct Ethereum investment through public securities markets. Managed by BlackRock Fund Advisors, the ETF’s assets include Ethereum held by Coinbase Custody Trust and cash managed by BNY Mellon. This ETF simplifies Ethereum investment by bypassing the complexities of direct acquisition and trading.
The proposal also seeks to expand the list of ETFs eligible for options trading to include BlackRock’s Ethereum ETF, highlighting the fund’s secure asset custody and management roles. The ETF operates under a trust agreement with Wilmington Trust, which acts as the trustee in Delaware.
Recent Developments and Market Impact
This filing coincides with BlackRock’s Ethereum ETF receiving inflows of $109.9 million on August 6, bringing total inflows to $869.8 million since its launch on July 23. This represents the third-largest inflow day for the fund, as investors sought to capitalize on an 18% drop in Ethereum’s price on August 5. The fund ranks sixth among the best-performing ETFs launched in 2024, with four other top-performing funds being spot Bitcoin ETFs.
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Expert Analysis and Regulatory Outlook
Bloomberg analyst James Seyffart has indicated that the SEC’s decision is expected around April 9, 2025. The approval process involves multiple regulatory bodies, ensuring comprehensive oversight. For instance, the SEC’s decision will consider inputs from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC).
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