The US Securities and Exchange Commission (SEC) has approved options trading for multiple spot Ether exchange-traded funds (ETFs), expanding Ether's investment appeal among institutional traders. This regulatory change, issued on April 9, followed a proposed rule change by BlackRock for its iShares Ethereum Trust (ETHA) submitted on July 22, 2024. In addition to BlackRock, approvals were also granted to Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Fidelity Ethereum Fund. The approval is significant as options on ETFs allow investors to hedge against asset declines, which may help boost interest in Ether following regulators' previous approval of spot Ethereum ETFs last July. However, net inflows into the spot Ether funds remain low, with a majority of institutional funds still directed towards Bitcoin. BlackRock's ETHA has seen a 56% decrease in net assets this year, amounting to $1.8 billion. The SEC's current approach reflects a broader shift in US regulatory attitudes toward the crypto sector under recent political changes, including closing investigations into various crypto companies and advancing pro-stablecoin legislation. Regulators are also working on a comprehensive crypto market structure bill expected to be finalized this year.

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