SEC Greenlights Three New Spot Ethereum ETFs to Trade on NASDAQ and NYSE

The US Securities and Exchange Commission (SEC) has approved at least three spot Ethereum ETFs from different asset managers.

According to the April 9, 2025, official SEC filings, the regulator approved trading spot  Ethereum ETFs for BlackRock’s iShares Ethereum Trust, Bitwise Ethereum ETF, Grayscale’s Ethereum Trust, and Ethereum Mini Trust. Investors will now be able to trade options on NASDAQ and NYSE.

Lower Cost Investing Tools

The move has opened an additional financial venture for investors interested in engaging with Ethereum-based digital assets, broadening their crypto market opportunities. In regards to NASDAQ, the filing stated that the Exchange proposed to amend its rules to allow the listing and trading of options on the Trust,” adding:

“The Exchange states that options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their needs in connection with Ether products and positions.”

The spot Ethereum ETFs will allow investors to gain exposure to digital assets without buying and storing the virtual coins. With options, investors can buy or sell an asset at a predetermined price on a set date. The decision to allow exchanges like NASDAQ the approval to list options follows months of regulatory review after BlackRock first submitted its request in July 2024.

Help Stabilize Interest in Digital Assets

In response to the applications by the three asset managers, the SEC stated that the new products were lower-cost vehicles that would enable investors to gain exposure to Ether as they hedge existing positions, which could help stabilize interest in digital assets. The agency added that the instruments would offer a “hedging vehicle” to accommodate market risk. The statement further said:

“Options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot ether.”

Bet on the Future Price of the Digital Asset

Crypto options have become a popular investment vehicle that enables investors to gain exposure to the performance of their favorite cryptocurrencies instead of investing directly in them. With spot Ethereum ETFs, traders can bet on the future price of the digital asset. Moreover, options trading on ETFs add extra liquidity to the digital asset investment space.

The SEC opened up the space beginning in 2024 when it approved spot Bitcoin ETFs before approving Spot Ethereum ETFs a few months later. The SEC also approved options trading on Bitcoin funds. Crypto ETFs managed by asset managers like BlackRock, Fidelity, and Grayscale allow investors from top hedge funds and retail investors to easily and regulated invest in cryptocurrency.

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Conclusion

The SEC’s decision to approve spot Ethereum ETFs from numerous asset managers occurred during a lot of regulatory reorganization within the Trump 2 administration. Since coming back into office, US President Donald Trump has made several decisions aimed at integrating cryptocurrencies into the mainstream financial market. As the crypto community celebrates the approval of Trump’s pick for the SEC chairmanship, they will be looking forward to the approval of other awaiting regulators to list other ETFs, giving investors exposure to altcoins like Solana, XRP, and Dogecoin.

Frequently Asked Questions (FAQs)

How do spot Ethereum ETFs work?

Spot Ethereum ETFs track the price performance of digital assets by investing in a portfolio linked to their instruments. Like similar funds, crypto ETFs trade on regular stock exchanges where investors can hold them in their standard brokerage accounts.

Does crypto ETFs pay dividends?

Traders who own shares in crypto ETFs may receive dividends. Like mutual funds, the dividends may be paid monthly or at some other interval, depending on the ETF.

How many different types of crypto ETFs are there?

There are at least two types of Crypto ETFs: Spot and Futures ETFs.

Appendix: Glossary to Key Terms

ETFs: ETFs are investment vehicles that issue publicly traded securities offering exposure to the price movements of bitcoin futures contracts.

Spot ETFs: Spot crypto ETFs reflect an asset’s real-time market price and are continuously rebalanced by buying and selling tokens, giving investors exposure to the same price movements similar to crypto exchange traders  but without having to hold the asset directly

Reference

The SEC