CoinMarketCap: Read what our contributors have to say. This content is provided by the community. DYOR!
Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025
Table of Contents
Market Musing-g

Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025

BSCN
By BSCN
Created 5 months ago, last updated 5 months ago
3 mins read
Nasdaq and BlackRock Propose Options for Spot Ethereum ETF: SEC Decision Expected by April 2025
On August 6, Nasdaq and BlackRock submitted a proposal to the US Securities and Exchange Commission (SEC) to list and trade options for BlackRock's spot Ethereum Exchange-Traded Fund (ETF). 

The proposal, filed through the Nasdaq International Securities Exchange, represents a significant step in expanding crypto investment options within traditional financial markets.

Spot Ethereum ETF Structure

According to the filing, BlackRock's proposed iShares Ethereum Trust will be exclusively backed by Ethereum (ETH), which Coinbase will custody. The Bank of New York Mellon will manage the cash assets. Notably, the trust will avoid engaging in Ethereum staking to generate additional income. 

 

The primary aim of this proposal is to enhance the range of investment tools available for Ethereum, making it more accessible to traditional investors. While these shares do not provide direct ownership of ETH, they offer exposure to Ethereum through public securities markets.

"The exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether," the filing said.

Options provide traders the flexibility to buy or sell an asset, such as a stock or ETF, at a predetermined price before a set date. This tool is used to hedge against potential losses or speculate on future price movements. 

 

Unlike futures, options give traders the choice to execute or not execute the trade, offering greater flexibility.

 

Nasdaq and BlackRock have a long track record in listing options for commodity ETFs structured as trusts. Their previous successes include the iShares COMEX Gold Trust and the iShares Silver Trust. 

Regulatory Approval Timeline

Bloomberg ETF analyst James Seyffart noted that the SEC has a 21-day window to comment on the proposal. However, the final decision is expected around April 9, 2025.

 

Beyond the SEC, approval is also required from the Office of the Comptroller of the Currency (OCC) and the Commodity Futures Trading Commission (CFTC).

ETHA’s Growing Market Presence

Since the launch of spot Ethereum ETFs in the US on July 23, BlackRock’s Ethereum ETF, ETHA, has seen its market dominance rise. In terms of assets under management (AUM), ETHA's share of the market has increased from 3% to 9%, according to DefiLlama. 

 

Despite this growth, Grayscale's Ethereum Trust, now converted into an ETF (ETHE), maintains a significant lead with an AUM of $4.77 billion, nearly nine times larger than ETHA.

3 views
0 likes
|

Other articles published on Aug 13, 2024

Market Musing-g

Solana Memecoin New Pepe Will Explode 16,000% Before Exchange Listing, While DOGE and SHIB Plummet

New Pepe could turn early investors into multi-millionaires, like other memecoins, such as Shiba Inu...
By Crypto Intelligence
5 months ago
3 mins read
DeFi

5 Promising Altcoins to Invest in for 2024’s Biggest Gains

Discover the top 5 altcoins poised for significant growth in 2024. Our expert analysis and investment tips help you make informed decisions for the future.
By OvenAdd
5 months ago
5 mins read
Market Musing-g

Analyst Reaffirms CleanSpark Stock as ‘Buy’ with $27 Target Price

CleanSpark, a leading Bitcoin mining firm, has received a renewed "buy" rating from H.C. Wainwright analyst Mike Colonnese, who set a target price of $27 for its shares. Despite mixed Q3 2024 resul...
By Ultramining_Eng
5 months ago
1 min read
Market Musing-g

SATS recovers 104%, but double top formation threatens steep correction

The latest Ordinals rebound leads to the potential formation of a bearish double top, a pattern that could signal the start of a steep retracement journey for the cryptocurrency. SATS (SATS) has st...
By crypto.news
5 months ago
3 mins read
Market Musing-g

Former Disney Exec Joins Ethereum Developer Consensys

Ethereum studio Consensys has hired Disney veteran Dan Odell
By U_Today
5 months ago
2 mins read
Market Musing-g

Justin Sun Executes Strategic Crypto Transfers

Justin Sun made significant crypto transfers, sparking market speculations. He moved assets between Lido, Aave, and Poloniex, highlighting his strategic maneuvers. Continue Reading:Justin Sun Execu...
By COINTURK NEWS
5 months ago
3 mins read

Join the thousands already learning crypto!

Join our free newsletter for daily crypto updates!