The Nasdaq International Securities Exchange has put out a formal request asking the Securities and Exchange Commission (SEC) to allow it list and trade options on a newly proposed BlackRock-managed Ethereum trust. This request was conveyed in a Tuesday filing and centered on the iShares Ethereum Trust. By and large, the move by Nasdaq may just be another giant step toward integrating crypto assets into traditional financial markets.
According to the filing, the iShares Ethereum Trust will exclusively hold Ethereum, secured by Coinbase, and cash managed by The Bank of New York Mellon.
The filing also details an interesting aspect about the proposed trust. It says, unlike other crypto ventures, this one will not engage in Ethereum proof-of-stake validation or staking activities. With that, it will be able to maintain its status as a purely passive investment vehicle. The concept behind this structure is to see to it that the trust remains solely focused on providing exposure to Ethereum. That is, without the unnecessary distractions of extra earnings from staking.
BlackRock Brings New Trading Opportunity to Ethereum Enthusiasts
Notably, Nasdaq has said that its goal with this proposal is to enhance the accessibility of Ethereum investments. That is, by introducing options trading — a tool traditionally used in equity markets for hedging and speculation.
Options allow investors to manage risk and speculate on price movements with more flexibility than what futures contracts offer. Unlike futures, an individual can choose whether or not to execute a trade.
By offering options on the iShares Ethereum Trust, Nasdaq is looking to give investors a cost-effective alternative to direct crypto investments.
Furthermore, the trust’s shares, while not a direct investment in Ether, offer a public securities market alternative for those looking to gain exposure to Ethereum in a manner familiar to them.
Crypto Goes Mainstream
Nasdaq’s recent efforts, displayed through its request to the SEC, might be a direct reflection of a broader trend. It shows that crypto assets are now, more than ever, being accepted and integrated into mainstream financial frameworks.
In January, the SEC approved several spot Bitcoin exchange-traded funds (ETFs). By May, the regulator also gave the green light for Ethereum ETFs. This paradigm shift by a regulator that once had a rigid outlook to crypto is now seen as a significant advancement and will undoubtedly do well for its cause.
