Ethereum

BlackRock

<p><strong>Nasdaq</strong>&nbsp;and BlackRock have submitted a proposal to the SEC to trade options on BlackRock’s spot Ethereum ETF. This request detailed in a new&nbsp;<a href="https://www.sec.gov/files/rules/sro/ise/2024/34-100661.pdf" rel="noopener noreferrer nofollow">filing</a>&nbsp;shows an effort to expand the options for investment products linked to Ethereum.</p>
<p>BlackRock’s Ethereum ETF, listed in July after receiving approval from the SEC in May, is applying for a rule change to allow these options trading.</p>
<h2 class="wp-block-heading" id="h-ethereum-etf-performance-and-demand-drive"><strong>Ethereum ETF Performance and Demand Drive</strong></h2>
<p>Options Trading addition comes as&nbsp;<strong>iShares Ethereum Trust</strong>&nbsp;performed well with investors showing increased interest in the product. The ETF attracted nearly $900 million in assets with a single-day record inflow of&nbsp;<a href="https://www.thecoinrepublic.com/2024/08/07/blackrock-ethereum-etf-draws-record-109-9m-inflow/" rel="noopener noreferrer nofollow">$109.9M</a>&nbsp;on 6th August.</p>
<p>The interest has placed the ETF among the top six performers of the ETFs launched in 2024. It reflects a positive trend of investors despite Ethereum’s price volatility.</p>
<p>Ethereum’s market volatility has been pretty severe. ETH saw major whale movements over the last day.</p>
<p>A wallet linked to the ICO of Ethereum from 2014, started transacting again after nine years of dormancy. The address received an 806,351 percent increase from an initial investment of 500 ETH.</p>
<p>Coupled with the&nbsp;<a href="https://www.thecoinrepublic.com/2024/08/07/whale-alert-dormant-ethereum-whale-up-china-transfers-2b-eth/" rel="noopener noreferrer nofollow">movement</a>&nbsp;of $2 billion worth of Ether captured in the Plus Token Ponzi scheme, these developments have fueled concerns regarding massive sell-offs.</p>
<h2 class="wp-block-heading" id="h-details-of-the-proposed-options-trading"><strong>Details of the Proposed Options Trading</strong></h2>
<p>Options trading for the iShares&nbsp;<a href="https://www.thecoinrepublic.com/price-prediction/ethereum/" rel="noopener noreferrer nofollow">Ethereum</a>&nbsp;Trust will allow investors to purchase or sell the fund’s shares at a stipulated price before expiration.</p>
<p>BlackRock Fund Advisors is the investment manager of the ETF. Currently, Coinbase Custody Trust is entrusted with the ETFs. The Bank of New York Mellon manages the cash.</p>
<p>Options Trading is considered an opportunity to expand the possibilities of the ETF to develop more investment strategies.</p>
<h2 class="wp-block-heading" id="h-market-context-and-regulatory-timeline"><strong>Market Context and Regulatory Timeline</strong></h2>
<p>However, the option trading proposal is still under consideration with the decision expected to be made before April 2025. Financial analyst James Seyffart added that the review process will not be limited to the SEC only.</p>
<p>Comments from the Options Clearing Corporation (OCC) and the Commodity Futures Trading Commission (CFTC) are still anticipated. The result will impact the creation of future crypto-based instruments and might act as a reference point for other products.</p>
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   <p lang="en" dir="ltr">Nasdaq and BlackRock's filing to add options on Ethereum ETFs has hit the SEC site. Final SEC decision on this from SEC likely to be around April 9th, 2025.<br><br>(SEC is not the only decision maker on adding options here. Also need signoff from OCC &amp; CFTC) <a href="https://t.co/K4HunUPp7S" rel="noopener noreferrer nofollow">https://t.co/K4HunUPp7S</a> <a href="https://t.co/5kQH0mljTz" rel="noopener noreferrer nofollow">pic.twitter.com/5kQH0mljTz</a></p>— James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1820916415227908108?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 6, 2024</a>
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<p>This move by Nasdaq and BlackRock demonstrates their dedication to providing exposure to digital assets through traditional financial institutions. In addition, it shows that more and more institutions are coming into the crypto market.</p>
<p>Concurrently, the performance of the iShares Ethereum Trust shows that there is a high demand for products like Ethereum ETFs in the market.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2024/08/08/ethereum-etf-to-expand-with-options-trading-how-will-eth-react/" rel="noopener noreferrer nofollow">Ethereum ETF to Expand with Options Trading, How Will ETH React</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Ethereum ETF to Expand with Options Trading, How Will ETH React

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