The US Securities and Exchange Commission (SEC) has officially approved options trading on spot Ethereum exchange-traded funds (ETFs).

The approval covers several spot Ethereum ETFs, including BlackRock’s iShares Ethereum Trust, Bitwise Ethereum ETF, Grayscale’s Ethereum Trust, and the Ethereum Mini Trust.

Options trading allows investors to speculate on the future price of Ethereum without owning the asset directly. The new development enables traders to employ strategies like covered calls or buffered exposure, adding depth to the Ethereum market.

The move follows the SEC’s green light for spot Ethereum ETFs last year, which have seen significant net inflows of $2.34 billion.

Ethereum’s market has faced challenges recently, with a 45% drop in value during the first quarter of 2025. Despite this, the introduction of options trading on Ethereum ETFs could provide fresh momentum for the asset. The approval is expected by October.

For more information on these topics, visit diplomacy.edu.