In a notable trend, two -2x Ethereum ETFs designed for shorting ETH performance have emerged as the top-performing funds of 2025, indicating a shift in investor strategies towards volatility.

The SEC's actions reflect a shift in regulatory approach under President Donald Trump, with decreased enforcement against the crypto industry.

The SEC stated that options on the Trust will serve as a cost-effective investment tool and a hedging mechanism for investors, appealing particularly to institutional players.

However, ETH ETFs have struggled in 2025, down more than 50% year-to-date, with limited inflows recorded since February 20.

On April 9, 2025, the SEC approved options trading for Ethereum exchange-traded funds (ETFs) managed by BlackRock and Fidelity, marking a significant development for the Ethereum market.

Moreover, net inflows into spot Ether funds have been low, with more investor interest directed toward Bitcoin funds.

The SEC's decision was granted through an accelerated process, indicating the agency's recognition of the ETFs' compliance with regulatory standards.

These recent developments illustrate how regulatory and geopolitical factors are increasingly influencing cryptocurrency prices and market dynamics.

This approval follows a proposed rule change by BlackRock for its iShares Ethereum Trust, which was submitted in July 2024, and is seen as providing institutional legitimacy and broader investor access.

Options are a favored trading tool for institutional investors, allowing them to hedge risks and manage substantial positions.

Following the announcement, Ethereum's price surged over 14%, trading at approximately $1,617, although this rise was influenced by external factors, including a temporary pause in U.S. tariffs.

Despite the positive news, Ethereum's price had recently fluctuated, dropping to around $1,400 before rebounding on the same day of the announcement.