The Securities and Exchange Commission (SEC) has officially authorized the trading of options linked to ether (ETH) exchange-traded funds (ETFs).
On Wednesday, the agency gave its approval to a submission from Nasdaq ISE made last July, which sought to list options contracts for BlackRock’s iShares Ethereum Trust (ETHA). Options are a favored tool among traders for leveraging positions and hedging against risks, particularly appealing to institutional investors interested in managing substantial shares.
The SEC was required to arrive at a decision by today. ETF analyst James Seyffart from Bloomberg Intelligence indicated that this approval was “100% expected.”
These options are specifically tied to ETHA, meaning BlackRock’s product is the only ether ETF available for options trading.
Additional funds are listed on the New York Stock Exchange’s Arca and Cboe.