BlackRock Plans Ethereum ETF Options, Files With SEC
07 August 2024 - 8:00PM
NEWSBTC
In a notable development, BlackRock, one of the world’s largest
asset managers and ETF issuers, has collaborated with the Nasdaq
Stock Market in a move to introduce options for its Ethereum ETF
recently approved by US regulators. 2025 Decision On Ethereum
ETF Options Proposal The filing with the US Securities and Exchange
Commission (SEC) outlines BlackRock’s proposal to amend Options 4,
Section 3 to allow for options trading on the iShares Ethereum ETF
Trust. Related Reading: 3 Reasons To Buy XRP Now: Crypto
Analyst Shares Bullish Forecast Per the filling, if approved,
options on the Trust will adhere to the Exchange’s existing rules
for ETF options trading. These rules govern various aspects such as
listing criteria, expirations, exercise prices, margin
requirements, and trading halt procedures, ensuring a standardized
approach to trading options on the Trust. The filling further
reads: ….The Exchange believes that offering options on the Trust
for trading on the Exchange will promote competition by providing
investors with an additional, relatively low-cost means to hedge
their portfolios and meet their investment needs in connection with
spot ether prices and ether related products and positions However,
Bloomberg ETF expert James Seyffart noted that the introduction of
options on BlackRock’s Ethereum ETF is subject to regulatory
approval not only from the SEC, but also from the Options Clearing
Corporation (OCC) and the Commodity Futures Trading Commission
(CFTC). Seyffart expects a final decision from the SEC around April
9, 2025. Key Levels To Watch For ETH’s Price This
development, if approved by the SEC, would give investors further
exposure to the second largest cryptocurrency on the market.
However, in the near term, ETH needs bullish catalysts to break out
of the downtrend witnessed especially on Monday, when the token
retraced over 20% following global economic uncertainties and
increased selling pressure. Related Reading: Bitcoin Sellers
Running Out Of Coins As Dominance Hits 3-Year High At the time of
writing, ETH is trading at $2,488, up 1.8% over the past 24 hours,
after plunging to a low of $2,112, a level not seen since January
2023 on Monday. This level is key as crypto analyst Trading
Tank, in a recent social media post on X (formerly Twitter), claims
that as long as ETH remains above $2,400, further price recovery
could be seen in the near future for the second largest
cryptocurrency on the market. Trading Tank also highlighted the
$2,575 level as crucial for another leg higher to test its first
resistance to climb to higher levels at $2,690 on the ETH/USDT
daily chart. In the scenario in which ETH could breach this
barrier, the next hurdle to watch is noted by the $2,910 resistance
level, which is imperative to reclaim the $3,000 milestone.
Featured image from DALL-E, chart from TradingView.com
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