The U.S. Securities and Exchange Commission (SEC) has approved options trading on spot Ethereum exchange-traded funds (ETFs). This decision allows for the listing and trading of options on several Ethereum ETFs, including those from BlackRock, Bitwise, and Grayscale, following proposals from Nasdaq ISE and NYSE American. The approved options include those on the iShares Ethereum Trust (ETHA), the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust. These options, which will offer up to 25,000 contracts, are set to feature American-style exercise and physical settlement, adhering to existing listing rules applicable to ETF options, such as margin requirements, strike intervals, and expiration cycles. This move is expected to enhance the accessibility and investment appeal of Ethereum, potentially impacting its market dynamics by providing institutional investors with new tools for leveraging and hedging risk. ETF analyst James Seyffart noted that the approval was '100% expected' and aligns with the SEC's previous decisions on Bitcoin ETF options.