On April 10, 2025, the U.S. Securities and Exchange Commission (SEC) approved options trading on Ethereum ETFs from BlackRock, Grayscale, and Bitwise, opening new opportunities for investors to access digital assets without needing to own them directly. With Ethereum's price soaring 14% in the past 24 hours, will this move help ETH regain its position in the crypto market? Let's analyze in detail.
SEC Approves Options Trading on Ethereum ETF
According to a disclosure filed on April 9, 2025, the SEC approved options trading on spot Ethereum ETFs from three major organizations:
iShares Ethereum Trust of #BlackRock .
Bitwise Ethereum ETF of #Bitwise .
Ethereum Trust and Ethereum Mini Trust of #Grayscale .
These Ethereum ETFs, approved by the SEC in 2024 (just a few months after the approval of Bitcoin ETFs), allow investors to access the value of Ethereum without needing to buy and store this cryptocurrency directly. Options are financial instruments that allow investors to buy or sell an asset at a predetermined price on a specific date, enabling them to bet on price movements without owning the underlying asset.
Options trading on Ethereum ETFs is expected to increase liquidity in the crypto market, as experts have shared with Decrypt. This is particularly important in the context of the crypto market recovering, with Ethereum increasing by 14% in the past 24 hours, reaching 1,675 USD (according to CoinGecko) – one of the strongest performing coins on April 9, 2025.
Significance of Options on Ethereum ETF
Options are a popular tool in the crypto market as they allow investors to:
Access to price performance: Investors can bet on Ethereum's future price without needing to own ETH, reducing risks associated with wallet storage (such as the risk of hacks – for example, the 2 billion USD hack by North Korea, according to the United Nations 2023).
Larger market than spot: The crypto options market often has a larger scale than the spot market, with options trading volumes for Bitcoin and Ethereum reaching 32 billion USD per month (according to The Block 2024).
Increased flexibility: Options allow investors to hedge their portfolio or speculate without committing large capital.
The SEC's approval of options on Ethereum ETFs, following its approval for Bitcoin ETFs in 2024, is an important step. Crypto ETFs – managed by major firms like BlackRock, Fidelity, and Grayscale – provide an easy and regulated approach for investors, from large hedge funds to individual investors.
Performance of Ethereum ETF: Falling Short of Expectations
While Bitcoin ETFs have attracted massive capital inflows (40 billion USD into BlackRock's fund, according to previous articles), pushing Bitcoin's price to a record high (109,312 USD on January 20, 2025, according to CryptoQuant), Ethereum ETFs have not garnered similar appeal. As of April 9, 2025, capital inflows into Ethereum ETFs were rather modest, with 3.3 million USD withdrawn on April 8, 2025 (according to CoinGlass). This may be due to ETH's significant price drop of 45% in Q1/2025 (to 1,830 USD, according to prior information), making investors cautious.
However, Ethereum's price increase of 14% to 1,675 USD on April 9, 2025 – thanks to President Trump's decision to suspend reciprocal tariffs with most countries – has sent positive signals. This decision alleviates pressure from the trade war (104% tariffs on Chinese goods, according to previous articles), helping the financial market, including crypto, to recover.
Expansion Trend: Altcoin ETFs are Targeted
In addition to Ethereum, many leading asset managers are seeking SEC approval to launch ETFs for other altcoins like Solana, XRP, and Dogecoin. For instance, the Teucrium 2x Long Daily XRP ETF launched on April 8, 2025, recorded a trading volume of 5 million USD on its first day (according to Eric Balchunas on X). This indicates a growing interest in digital assets beyond Bitcoin and Ethereum, even though the SEC remains cautious towards altcoins due to concerns about legality and market manipulation risks.
Impact on the Crypto Market
Increased liquidity: Trading options on the Ethereum ETF will attract more capital from institutional investors, increasing liquidity in the ETH market (Ethereum's DEX trading volume currently reaches 57 billion USD, despite a 50% decrease in Q1/2025, according to previous articles).
Positive signals: The SEC's approval is a step forward in legalizing crypto in the USA, which may boost investor confidence, especially after the market dropped by 11.65% in capitalization (2.88 trillion USD) in Q1/2025.
Opportunity for ETH: With a 14% price increase and options on the ETF, Ethereum may attract more attention, although there is still a significant gap to recover to the peak of 4,878 USD (November 2021, according to CoinGecko).
Market Context: Mild Recovery but Still Uncertain
Ethereum's price increase occurs amid a slight recovery in the crypto market due to Trump's decision to suspend tariffs. However, the market still faces many challenges: a capital outflow of 326 million USD from Bitcoin ETFs (April 8, 2025, according to previous articles) and a 'risk-averse' sentiment due to stagflation fears (inflation rising by 1.5%, according to Goldman Sachs). If the Fed does not cut interest rates soon (expected 0.25% in May 2025, according to CME FedWatch), pressure on the crypto market may persist.
Conclusion: Ethereum – A Light at the End of the Tunnel?
The SEC's approval of options trading on Ethereum ETFs from BlackRock, Grayscale, and Bitwise represents an important step, opening opportunities for investors to access ETH safely and in a regulated manner. With the ETH price increasing by 14% to 1,675 USD due to Trump's tariff suspension move, the market is showing positive signals. However, compared to Bitcoin ETFs, Ethereum ETFs have yet to achieve the expected appeal, and the crypto market remains unstable. Can Ethereum capitalize on this opportunity to regain its glory, or will it continue to be overshadowed by Bitcoin? The answer will depend on upcoming market developments and global financial policies.
Risk warning: Investing in crypto and options carries high risks due to price volatility and macroeconomic instability. Consider carefully before participating.
