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Approval from SEC for Ethereum ETFs: More on the way! What does it mean? - Coin Bulletin
The SEC (SEC) has approved options trading for Ethereum ETFs from major firms such as BlackRock, Bitwise, and Grayscale.
The SEC announced in a statement last Wednesday that it has given the green light for options trading on spot Ethereum ETFs linked to the price of Ethereum (ETH). This means that investors can now trade options on these funds based on the price of Ethereum.
Among the approved ETFs, important funds such as BlackRock's iShares Ethereum Trust (ETHA), Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust are included.
The SEC's approval was eagerly awaited, especially by institutional investors. Options trading for these funds will allow investors to gain more profit from Ethereum price movements and manage risks. Last year, around the same time, the SEC had approved eight spot Ethereum ETFs, and these funds began trading from the summer.
(# New funds are on the way
Bloomberg Intelligence ETF analyst James Seyffart stated that the decision was not a surprise and that the market had already anticipated it. ETF Store president Nate Geraci mentioned that, similar to Bitcoin ETFs, various types of funds could soon be launched for Ethereum ETFs as well. It is especially noted that ETFs that implement a fund strategy that provides additional returns by selling options on the Ethereum assets they hold and ETFs that provide limited protection against price declines to reduce investor risk may be seen frequently in the upcoming period.
After the SEC's approval of options, the price of Ethereum also quickly rose. Recently, ETH had fallen to around $1,400, but following the news, it rose again to around $1,650, attracting attention.
Analyst Seyffart also stated that the approval of transactions for generating income by locking up staking assets in Ethereum ETFs could be approved in the near term. Noting that the approval of staking is a significant development that could increase investors' earnings, Seyffart indicated that the deadline for the final decision is the end of October, but interim decisions could also be issued in May and August.