asdaq and BlackRock filed a request to the U.S. SEC to request authorization for the options on the iShares Ethereum Trust ETF. The objective of this move is to increase the efficiency of the market as well as offer better investment possibilities such as hedging positions.
Potential Benefits for Investors and Timeline
Further financial instruments will be provided to enable investors to hedge positions in the crypto market with approval of an option for the spot Ethereum ETF. The options strategy will enable cheaper ways of hedging and more hedging opportunities for investors.
A response from the FED for the approval of such a financial instrument is expected in 21 days. However the deadline is set for April 2025.
ETHA's Growing Market Presence
Since ETHA’s launch that took place on July 23 2024, the market dominance has since increased from 3% to 9%. Moreover the AUM has hit $521 million dollars. On the other hand Grayscale ETHE is still at the forefront with a market share of $4.7 billion dollars in AUM.
Parallels with Bitcoin ETFs
Although the bitcoin ETF saw more inflow and volume in dollars, it is important to note that The rate at which ETHA has grown is similar to that of the BlackRock’s Bitcoin ETF commonly referred to as IBIT which started out small and only started to increase its market share after the launch. Based on this trend, it can be concluded that there is a possibility of ETHA’s expansion in terms of its market share.
Ethereum ETF Options: Market Shift
Such a decision taken by BlackRock and Nasdaq means that making options for Ethereum ETF now indicates the next phase of development of crypto investment products. If approved, it may offer investors better instruments for hedging the Ethereum risk. Depending on how the regulations stand in the future, there can be new innovations, and dynamics of crypto ETFs in the market.
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