The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to allow options trading for BlackRock’s Ethereum ETF. According to an official announcement, the regulatory body will make its final ruling on April 9, 2025.
Spot Ethereum ETF approval in 2024 marked key milestone
This decision follows the SEC’s approval in May 2024 of BlackRock’s Spot Ethereum ETF, along with eight other funds, marking a major milestone in integrating cryptocurrency-based investment products into the traditional financial sector. However, in August, Nasdaq, on behalf of BlackRock, submitted a proposal seeking approval for options trading on the iShares Ethereum Trust, which would enable investors to speculate on Ethereum’s price movements without owning the asset itself.
⚡️ NEW: SEC Delays Decision on BlackRock’s iShares Ethereum Trust Options.
The SEC has decided to extended its review of Nasdaq’s proposal to list and trade options on BlackRock’s iShares Ethereum Trust. The new deadline for a decision is April 9, 2025. pic.twitter.com/Z8yC9sTdM9
— Cointelegraph (@Cointelegraph) February 7, 2025
Approval could bring opportunities, but risks remain
While approval could bring greater investment opportunities and risk-hedging strategies for institutional and retail investors, it also raises concerns about market stability and increased volatility. The SEC cited the need for further review before making a final decision, a move that aligns with its cautious stance on cryptocurrency-related financial products. A similar approach was previously taken with Bitcoin ETFs, where the approval process was prolonged.
Fidelity proposal also under review
BlackRock is not the only firm impacted by this delay. The SEC is also reviewing a similar proposal from Fidelity, which seeks approval to list and trade options on its own Ethereum ETF. The regulator has opened a public comment period for this proposal, allowing responses within 21 days from its publication in the Federal Register.
Impact on the broader Cryptocurrency market
The delay affects not just BlackRock and Fidelity but the broader cryptocurrency investment landscape. Major asset managers like VanEck, Ark Invest, and Grayscale are closely watching developments, as the SEC’s final ruling in April 2025 could shape the future of Ethereum and Bitcoin ETFs in the U.S. With crypto market volatility still a major concern, the outcome of these decisions will be pivotal in determining institutional adoption and regulatory clarity for crypto-based financial products.
Donald Trump’s WLF plans to establish a strategic Cryptocurrency reserve: report
WLF announces strategic Crypto reserve at Ondo Finance summit
World Liberty Financial (WLF), a crypto initiative linked to former U.S. President Donald Trump, is planning to establish a strategic reserve of digital assets, signalling a deeper commitment to blockchain-based finance. The announcement was made by WLF co-founder Chase Herro at Ondo Finance’s February 6 summit in New York.
Mysterious reserve and Ondo token purchase
The initiative, which remains shrouded in mystery, was bolstered by reports of WLF acquiring 342,000 ONDO tokens for $470,000 USDC earlier that day. While specific details on the reserve’s operation are yet to be disclosed, WLF also unveiled plans for its own layer-1 blockchain, aiming to bridge traditional finance with decentralized technology.
President Donald Trump’s DeFi project, World Liberty Financial, plans on creating a “strategic reserve” with tokens bought https://t.co/zH6O3bMuKu
— Bloomberg Crypto (@crypto) February 6, 2025
Trump family’s involvement in WLF
The Trump family plays a central role in WLF, with Donald Trump Jr. and Eric Trump serving as Web3 ambassadors, while Barron Trump is credited as the brand’s DeFi visionary. The organization has previously faced legal scrutiny over potential insider trading, though no official confirmations have been made.
Trump’s push for a national Crypto reserve
Trump, known for advocating fair digital asset regulations, has further pushed the idea of a strategic Bitcoin reserve. This aligns with his administration’s recent executive order on crypto policy, which led to the formation of a dedicated crypto working group under newly appointed crypto czar David Sacks.
Regulatory uncertainty and future outlook
As Bitcoin’s price stabilizes after surpassing $100,000 post-election, the potential of a national crypto reserve remains uncertain. However, Trump’s growing influence in the sector could shape upcoming regulations, impacting institutional and government adoption of digital assets in the years ahead.
Ethereum struggles to rally, but institutional demand and technical indicators signal a potential breakout
Ethereum (ETH) continues to trade within a narrow range around $2,700, failing to capitalize on the broader crypto market’s bullish momentum. While ETH has rebounded 25% from its Monday flash crash low of $2,150, it remains down 6% for the week and is still 35% below its 2021 all-time high of $4,800.
Bitcoin (BTC) is only 10% below its all-time high of $109,000, highlighting Ethereum’s weaker performance. Traders are frustrated as Ethereum struggles to gain momentum due to competition from Solana (SOL) and Layer-2 solutions. High fees and scalability issues continue to be major concerns, with slow progress on upgrades from the Ethereum Foundation.
Macroeconomic headwinds weigh on Ethereum and Altcoins
The broader altcoin market remains under pressure, with the total market cap of major altcoins excluding BTC and ETH at $890 billion—still 22% below 2021 peaks. Analysts attribute this to tight U.S. financial conditions, with 10-year Treasury yields at multi-decade highs of 4.5%.
Historically, altcoin bull runs have coincided with periods of financial easing, such as the massive rally in 2021. However, with no major liquidity injections expected from the Federal Reserve, a broad altcoin season remains unlikely in the short term.
Institutional demand and Trump-Linked adoption drive optimism
Despite these challenges, Ethereum remains the only altcoin with an approved spot ETF in the U.S., and institutional demand is surging. In just six days, over $500 million has flowed into BlackRock’s Ethereum ETF, reinforcing ETH’s appeal among investors.
Additionally, Ethereum has gained traction as a “Trump family” coin, with Trump-affiliated World Liberty Financial accumulating hundreds of millions of dollars in ETH. Eric Trump has publicly endorsed Ethereum, urging his followers to accumulate the asset.
Technical indicators suggest a potential breakout
From a technical standpoint, Ethereum may be on the verge of a breakout. Analysts point to historical patterns where ETH typically performs well in Q1 of a bull market. Additionally, crypto analyst Mister Crypto highlights Ethereum forming an ascending triangle—a pattern that often precedes a bullish breakout.
However, macroeconomic risks remain a key hurdle. If financial conditions unexpectedly tighten, Ethereum and the broader crypto market could face renewed pressure.
2025: A potentially record-breaking year for Ethereum and Crypto
Despite its recent struggles, Ethereum’s long-term outlook remains positive. Institutional adoption, a decade-long track record in DeFi, and increasing attention from high-profile figures position ETH for future growth.
While an immediate alt-season pump remains unlikely, analysts believe 2025 could be a record-breaking year for crypto adoption, setting the stage for Ethereum’s resurgence in the market.
