SEC approves trading of options on Ethereum ETFs

The Securities and Exchange Commission (SEC) has given the green light to an innovation awaited by the financial world: the possibility of trading options on Ethereum spot ETF funds (ETH).

This is an additional step towards the tokenization of assets and the growing integration of traditional finance with the bull market of cryptocurrencies.

 The comparison with Bitcoin ETF after SEC approval for Ethereum

The giants of the financial sector BlackRock, Fidelity, and Bitwise have received approval from the U.S. authority.

Their respective proposals for spot ETFs on Ethereum—named ETHA, FETH, and BITW—can now benefit from regulated trading options, offering investors new tools to manage risk and return.

According to Nate Geraci, president of ETF Store, the approval by the SEC could attract additional capital to the ETH market. 

Geraci indeed expects the arrival of new thematic ETFs, such as those based on strategies with covered call or buffer ETFs, capable of mitigating the typical volatility of the crypto sector:^:

“The SEC has approved the trading of options on spot ETFs on Ethereum… As has already happened for BTC ETFs, we can expect a flurry of new launches from various issuers.”

Despite the positive update, Bloomberg analyst James Seyffart stated that this approval was not a surprise, so much so that the market had already fully priced it in.

In fact, the real focal point for the future of ETH ETFs might not be options trading, but rather the authorization for staking them. 

Seyffart specified that this approval could arrive at the beginning of May or August, even though an official deadline is set for the end of October: 

“It is possible that the approval of staking will arrive early, even though October remains the formal deadline.”

Many institutional investors, in fact, are looking with interest at the possibility of obtaining returns through staking ETH ETFs, estimated at around 3% annually.

In particular, this opportunity would make Ethereum ETFs much more attractive, bridging part of the gap compared to the better-performing ETF on Bitcoin.

Inflows in comparison: ETH ETF vs BTC ETF

Since their introduction, spot ETFs on Ethereum have so far gathered a total of 2.3 billion dollars in inflows, a modest figure when compared to the 35 billion recorded by similar funds on Bitcoin. 

This means a performance difference of 17 times in favor of products linked to BTC.

Many analysts attribute this significant difference precisely to the absence of the staking function, which has reduced the appeal of Ethereum ETFs among professional investors.

Despite the favorable context regarding regulation, it is interesting to note that the recent jump in the value of ETH by +10%, from 1400 to 1600 dollars, was not directly correlated to the news of the approval of the options.

This rise occurred on April 9, shortly after former President Donald Trump announced a temporary suspension of 90 days on various customs tariffs, instilling general optimism in the markets.

However, the public interest in Ethereum has shown a significant increase, as indicated by the new peaks in the Social Volume of the month of April. 

Despite this, the market sentiment around ETH remains weak, insufficient to ensure a solid and sustainable recovery in the short term.

From a technical standpoint, the 4-hour chart shows a clear bullish divergence in the RSI indicator, a possible leading signal of a rebound. 

However, for this recovery to be confirmed, it will be necessary for the value to exceed a critical technical resistance linked to the trend of the On Balance Volume (OBV).

In the short term, the price of ETH could still stagnate around the 50-period exponential moving average (50EMA), positioned around 1600 dollars, as has happened in recent days.

A strong increase in trading volume and a breakthrough of the resistance could push Ethereum higher.

But the spotlight remains focused on the medium to long-term horizon, where any possible regulatory shift on ETF staking could represent a genuine turning point.

Towards a New Era for Ethereum?

In light of recent developments, Ethereum is getting closer and closer to consolidation in the world of traditional finance. 

The decision of the SEC on spot ETF options trading represents an important step, but not a decisive one. Investors’ eyes are now turned to the next critical move, namely the authorization of staking.

If the SEC were to decide to proceed with the approval between May and August, it could finally unleash a wave of new institutional interest. Thus reshaping the balances in the crypto markets.

In the meantime, it is likely that ETH will experience a consolidation phase. But with the future support of positive macro indicators and a more comprehensive regulation, Ethereum could be ready for a new bull phase in the second half of the year.