Nasdaq Seeks Approval for Ethereum ETF Options Trading

Nasdaq has formally petitioned US regulators to allow options trading on Ethereum ETFs, which shows the further development of digital asset exchanges. This proposal focuses on the iShares Ethereum Trust, managed by Blackrock and traded only on the Nasdaq exchange. The decision highlights investors’ increasing desire to increase their exposure to cryptocurrency products amid high price fluctuations.

In July this year, Nasdaq included the iShares Ethereum Trust, which can be considered a significant advancement of Ethereum-based financial products. The ETF has accumulated nearly $1.5 billion in net inflows, which has been its asset since its initiation, showing a positive trend in investors’ interest and demand. Nasdaq recently submitted a filing to propose options trading for this particular ETF to attract more investors.

Ethereum ETFs Options Await SEC Decision

Despite the general interest in ETH-related tokens, the U.S. Securities and Exchange Commission (SEC) is still cautious. The SEC still has no green-lighted options trading for cryptocurrency ETFs, including the Bitcoin ETFs launched in January. These Bitcoin ETFs now have approximately $50 billion of assets under management. The regulator’s approach can be attributed to market volatility and the need for a deeper analysis of the situation, especially in view of recent fluctuations in the prices of cryptocurrencies.

Cryptocurrency ETFs are slowly being introduced into financial advisory services and hedge funds’ investment portfolios. Morgan Stanley has over $3.75 trillion in assets and will suggest Bitcoin ETFs to 15,000 advisors. In addition, Europe’s fourth-largest hedge fund recently bought $500m worth of Bitcoin ETFs, indicating institutions’ interest. This trend is supported by data from the financial advisor’s segment on the constant influx of investments into cryptocurrency products.

Nasdaq’s drive for Ethereum ETFs options trading is timely, given the significant demand and attention paid to financial instruments tied to digital assets.

Also Read: End of July ETF Update: BlackRock Leads with $20.02B Inflows, Grayscale Sees Significant Outflow