The U.S. Securities and Exchange Commission (SEC) has approved options trading for multiple Ethereum exchange-traded funds (ETFs), marking another milestone in cryptocurrency's integration with traditional finance.
According to Wednesday's regulatory filings, the approval applies to ETF options from major financial institutions including BlackRock's iShares Ethereum Trust, Bitwise Ethereum ETF, and Grayscale's Ethereum Trust and Ethereum Mini Trust.
The new approval enables investors to trade options contracts on Ethereum ETFs, allowing them to speculate on future prices and manage risk exposure. Options give traders the right to buy or sell ETF shares at preset prices before specific expiration dates.
This development builds upon the SEC's earlier approvals of both Ethereum and Bitcoin ETFs, with Bitcoin options trading already permitted. While Bitcoin ETFs have seen strong investor interest and helped drive Bitcoin to record highs, Ethereum funds have experienced more modest demand so far.
The cryptocurrency market responded positively to the news, with Ethereum's price jumping over 14% in 24 hours to reach $1,675. The surge came amid broader market gains influenced by easing trade tensions.
Major asset management companies are now pursuing regulatory approval for ETFs focused on other cryptocurrencies, including Solana, XRP, and Dogecoin, suggesting continued expansion of regulated crypto investment products.
The options trading approval represents the latest step in bringing cryptocurrency investments into mainstream financial markets, offering investors new ways to gain exposure to digital assets through regulated channels without directly holding the underlying cryptocurrencies.