Nasdaq Seeks SEC Approval to Offer Options Trading on BlackRock's Spot Ethereum ETF

BlackRock recently filed a proposal for options trading and listing on its spot Ethereum

ETHUSD exchange-traded fund (ETF), iShares

Ethereum Trust (ETHA).

The proposal was submitted to the US Securities Exchange and Commission (SEC) on August 6 via the Nasdaq International Securities Exchange.

Nasdaq and BlackRock Leverage Experience with Commodity ETFs for Crypto

According to the filing, the newly proposed iShares Ethereum Trust assets will consist solely of ETH, which Coinbase will hold. Meanwhile, the Bank of New York Mellon will hold the cash assets. Furthermore, the document affirmed that the trust will remain non-engaged in Ethereum staking to earn additional income.

Nasdaq outlined that this move aims to broaden the range of investment tools for Ethereum and make crypto investments more accessible within traditional financial markets.

Although these shares do not equate to a direct investment in ETH, they enable investors to gain exposure to Ethereum. This is because the approach takes place through the public securities market, which might be more familiar to traditional investors.

The options market allows traders to buy or sell an asset, like a stock or an ETF, at a specified price before a certain date. They often use options to protect against potential losses or to speculate on an asset's future price. Unlike futures, options provide flexibility since the trader can decide whether to execute the trade.

Both Nasdaq and BlackRock have notable experience in listing options on other commodity ETFs structured as trusts. These include iShares COMEX Gold Trust and iShares Silver Trust.Hence, this move to add options to the spot crypto ETF marks a significant development in this context.$ETH $BTC #BlackRockETHOptions #BinanceTurns7