The Securities and Exchange Commission (SEC) has approved proposals from NASDAQ and CBOE to list and trade options for the Spot Ethereum Exchange Trade Fund (ETF) managed by BlackRock and Fidelity, according to a filing on April 9.
Following the review process, which includes a review process, which includes justification for regulation of new product lists under section 19(b) of the Stock Exchange Act of 1934, the order was granted to the iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH).
A contract that provides American exercise and standard settlements
Both filings approved options for American movements and physical reconciliation. The approved contract complies with existing listing rules applicable to ETF options, including margins, strike intervals, series expiration cycles, and increased minimum trading.
The Etha and Feth options are subject to market-side 25,000 contract positions and movement restrictions, as the Bitcoin (BTC) ETF options were approved last year.
NASDAQ and CBOE highlighted the conservative nature of the 25,000 contractual CAPs derived from comparative analysis with other ETFs and product-based trusts.
Furthermore, Nasdaq noted that the expected risk for the maximum position of ETHA is less than 0.03% of Ethereum Market’s capitalization, representing less than 4.4% of outstanding shares in the trust. CBOE compared the proposed limits to those set for Bitcoin-based ETFs and similarly structured commodity products.
The approval follows the precedent set of Spot Bitcoin ETF options that received SEC approval on September 23, 2024 and began trading in November 2024.
As happened last year, options trading requirements from other issuers are likely to be approved, and trades begin the same week as Etha and Feth.
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