Ether coin ETF Options break through again! SEC approves Cboe and Nasdaq exchange listing of new options products.

On April 9, 2025, the U.S. Securities and Exchange Commission (SEC) consecutively approved two major proposals, allowing the Cboe Exchange and Nasdaq ISE to list and trade options based on Spot Ether ETF. These two ETFs are the Fidelity Ethereum Fund and the iShares Ethereum Trust (ETHA). This initiative symbolizes a further advancement in the financialization of Ether and opens up more opportunities for investors looking to manage risk or engage in leverage operations through derivation.

[What are ETF options?] Investment tools evolve again, mastering Ether price fluctuations.

ETF options are derivative financial products that allow investors to buy or sell specific ETF "call options" or "put options" to profit or hedge the risk of their Spot positions. In this approval case, both Cboe and ISE pointed out that enabling investors to participate in the Ether market in a more cost-effective and flexible manner is the main reason for promoting this proposal.

According to Fidelity and iShares, the ETFs tracked here are based on the real-time market price of Ether, rather than futures. This means that the options will also directly link to the Spot price, making the products more practical and reflective of the market.

Fidelity Ethereum Fund: Cboe takes the lead in listing, trading activity becomes key

Cboe exchange stated that from its listing on July 23, 2024, to December 23, 2024, the daily average trading volume of the Fidelity Ethereum Fund reached 1.07 million shares, with a total trading volume exceeding 115 million shares, which can be described as impressive. In terms of asset scale, by the end of 2024, the market value of this fund will reach $1.43 billion, far exceeding the minimum threshold of other similar ETF products.

Based on this data, Cboe recommends setting a limit of 25,000 contracts for the same direction positions and exercise, which is currently the lowest risk control design in the options market, aimed at preventing market manipulation and excessive concentration of risk. This design also adopts the same standards as the recent Bitcoin ETF options, reflecting the cautious attitude of regulatory authorities.

iShares Ethereum Trust (ETHA): Nasdaq follows suit, with equally impressive data.

The iShares Ethereum Trust, launched almost simultaneously with the Fidelity fund, has also been approved to issue options on Nasdaq ISE. According to data submitted by ISE, as of mid-December 2024, the average daily trading volume of ETHA reached 5.3 million shares, with an average daily trading value of 128 million USD. The fund's market capitalization at that time was approximately 1.16 billion USD, and it has more than 93,000 shareholders.

Similar to Cboe, ISE also recommends establishing a limit of 25,000 options. Although the market capitalization and trading volume of ETHA are sufficient to support higher limits (such as 50,000 or 75,000), ISE opts for a conservative design to align with regulatory trends and ensure market stability.

Strengthen monitoring mechanisms to prevent manipulation risks

Whether it is Cboe or ISE, both emphasize that the existing market surveillance mechanisms are sufficient to accommodate the launch of new products. Both exchanges are members of the "Intermarket Surveillance Group (ISG)" and can share surveillance information with other exchanges, while also working with FINRA to ensure that abnormal trading activities can be detected and addressed in real time.

In addition, the SEC emphasized in the approval announcement that due to the high correlation between the Chicago Mercantile Exchange (CME) and the Spot Ether market, ETF options trading will benefit from the monitoring capabilities and data resource support of the futures market.

Options open up more possibilities, and the market is looking forward to more products joining.

Currently, there are multiple Bitcoin ETF options products available in the market, and the addition of Ether ETF options undoubtedly enhances the diversity and flexibility of the market. As these types of derivation gradually enter the mainstream financial system, investors can not only participate in the volatility of crypto assets with higher efficiency but also expect to see more similar products getting approved, including ETFs and derivations related to mainstream coins like Solana and Avalanche.

The launch of the Fidelity and iShares Ether ETF options brings positive regulatory and market signals to the entire digital asset market, and also heralds a future of further integration between traditional finance and crypto assets.

This article discusses the breakthrough of Ether ETF options! The SEC approves new options products listed on the Cboe and Nasdaq exchanges, first appearing in Chain News ABMedia.