Every week we provide insights into popular assets and hot topics in crypto, so you can easily learn more about the crypto market in bite‑sized pieces.
We take a closer look at ETH ETF approvals - a key development for Ethereum and the broader crypto market.
What Is Ethereum and Ether?
Ethereum is a decentralized blockchain platform that supports smart contracts. Its native cryptocurrency is Ether (ETH), which is the second-largest cryptocurrency by market capitalization, after Bitcoin.
What Does the SEC Approval Mean?
- In January 2025, the U.S. Securities and Exchange Commission (SEC) approved the Bitwise Bitcoin & Ethereum ETF, giving investors regulated exposure to both spot BTC and spot ETH.
- The SEC also changed its rules to allow the creation of spot Ether ETFs.
- On April 9, 2025, the SEC approved options trading for several spot Ether ETFs, including funds such as BlackRock’s iShares Ethereum Trust (ETHA).
- Furthermore, the SEC has received proposals to permit staking of ETH for some ETFs (i.e., to stake the ETH held by the ETF), which could allow the ETF itself to earn staking rewards.
Why This Is Big News
- Increased Legitimacy & Institutional Access
- The approval of Ether ETFs marks another step in the maturation of the crypto market: institutional and traditional investors can get exposure to ETH via regulated financial products. This institutional flow could bring more capital into the crypto ecosystem.
- Volatility & Price Impact
- With ETFs now in place, demand for ETH could grow significantly, possibly driving price surges.
- On the other hand, as some ETF issuers may sell or stake ETH, this could affect supply dynamics.
- Options Trading Opens Up
- The approval of options on Ether ETFs provides a powerful tool for institutional traders to hedge risk or take leveraged positions.
- Staking Potential
- Several exchanges (e.g. Cboe BZX) have filed rule changes to allow “staking” of ETH held by ETF trusts.
- If approved, staking could be a long-term value driver: ETF funds could earn yield, possibly benefiting investors.
- But the feature is not finalized - it’s still under regulatory review.
Risks & Things to Watch
- There is regulatory risk: not all ETF issuers may get approval to stake ETH.
- Large ETF inflows could cause price squeezes or higher volatility.
- The interplay between staking rewards and ETF mechanics may pose structural risks: how much ETH gets staked, who controls it, and what impact on liquidity.
- Options markets can amplify both gains and losses; this could increase ETH price swings.
How to Access Ether via Change
If you want exposure to ETH without holding it directly, you can use the Change app to trade cryptocurrencies - including ETH. Stay informed about ETF developments, because they may influence price action.
Happy trading!
