Ethereum ETF Options Approved as 21Shares Files for Spot Dogecoin Fund

US regulators continue to advance the integration of digital assets into traditional finance, with the Securities and Exchange Commission (SEC) this week approving options trading for several spot Ethereum ETFs and receiving a new filing from 21Shares for a spot Dogecoin ETF. SEC Greenlights Options Trading for Spot Ethereum ETFs in Historic Institutional Shift The United States Securities and Exchange Commission (SEC) has officially approved options trading for several spot Ethereum exchange-traded funds (ETFs). The ruling , made public on April 9, opens the door for institutional investors to employ sophisticated hedging and speculative strategies tied to Ether, the second-largest cryptocurrency by market capitalization. The SEC's decision follows a proposed rule change originally filed by financial giant BlackRock on July 22, 2024, to allow options trading on its iShares Ethereum Trust (ETHA). The approval now extends to multiple Ethereum-based ETFs, including Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and Fidelity Ethereum Fund (FETH). In its statement, the SEC explained that the proposed amendment to exchange rules will permit the listing and trading of options on these Ethereum funds, with the agency emphasizing the added utility this provides to market participants. “Options on the Trust will provide investors with an additional, relatively lower cost investing tool to gain exposure to spot Ether, as well as a hedging vehicle to meet their needs in connection with Ether products and positions,” the Commission noted in its communication with Nasdaq. The move is widely seen as a turning point for Ethereum’s legitimacy within traditional finance. Options are considered a vital component in portfolio risk management, offering investors the ability to hedge against downside volatility while enabling more dynamic trading strategies. While Bitcoin has long enjoyed a wider suite of financial instruments, Ether has remained somewhat sidelined—until now. Despite the July 2024 approval of spot Ether ETFs, market reception has been muted compared to the exuberant inflows seen in Bitcoin products. Data from VettaFi shows that BlackRock’s ETHA, one of the largest Ether ETFs, currently holds $1.8 billion in net assets, a staggering 56% drop from its early-year peak. This latest development could reignite interest. Analysts believe that the availability of options will not only enhance Ether’s appeal to risk-managed portfolios but also provide new pathways for market makers to ensure deeper liquidity and tighter spreads across Ether markets. Political Winds Favor Crypto The SEC’s greenlight also reflects a broader regulatory shift in Washington. Since President Donald Trump’s return to office, the agency has noticeably eased its aggressive stance on crypto enforcement. This shift has been surprisingly swift, catching even seasoned legal analysts off guard. Legal scholars from the Harvard Law School Forum on Corporate Governance noted that the regulatory softening under the new administration materialized much faster than anticipated, with multiple high-profile investigations into crypto firms being shelved. Among those off the hook are centralized exchange Gemini, public company Coinbase, decentralized protocol developer Uniswap Labs, and NFT marketplace OpenSea. Simultaneously, the US legislative landscape is making parallel progress. Pro-stablecoin bills are advancing through Congress, with the STABLE Act—focused on enshrining the legal use of stablecoins—passing the House Financial Services Committee, while the GENIUS Act, a Senate-led initiative to govern stablecoin issuance, made it through the Senate Banking Committee. These developments are paving the way for a more comprehensive crypto regulatory framework. Lawmakers have also hinted that a sweeping crypto market structure bill is on the horizon and could be finalized before the end of 2025. Ethereum’s Next Chapter As Ethereum’s utility and legitimacy continue to expand, market observers are optimistic about the long-term prospects of the asset—even as Ether’s price currently lingers around $1,616, near a two-year low. The availability of options, combined with a more permissive regulatory environment, could catalyze a reversal in institutional sentiment. As investors weigh the impact of these changes, one thing is certain: Ethereum’s institutionalization has just entered a powerful new phase. 21Shares Files for Spot Dogecoin ETF with SEC, Signaling Serious Push for Meme Coin Legitimacy Meanwhile, digital asset manager 21Shares has officially filed a Form S-1 registration statement with the United States Securities and Exchange Commission (SEC) to launch a spot Dogecoin ETF. The proposed ETF would mark a new chapter in the meme coin’s mainstream journey, offering traditional investors direct exposure to Dogecoin (DOGE) through a regulated financial product. The filing , submitted on April 9, comes amid a growing wave of applications from rival firms including Grayscale and Bitwise, both of which have also recently filed for spot Dogecoin ETFs. According to 21Shares’ filing, the ETF will be designed to track the real-time market price of Dogecoin. The fund will be supported by Coinbase Custody, which is proposed to act as the official custodian for the underlying assets. However, the application did not specify which US stock exchange would host the ETF, nor did it disclose the management fee or ticker symbol. What makes this filing particularly notable is the firm’s partnership with the Dogecoin Foundation’s corporate arm, House of Doge, which will assist 21Shares in marketing the fund. The collaboration with House of Doge marks a rare formalization of community-led assets into structured, institutionally-accessible investment products. Dogecoin has “become more than a cryptocurrency: it represents a cultural and financial movement that continues to drive mainstream adoption,” said Duncan Moir, President of 21Shares. “With this ETF, DOGE offers investors a regulated avenue to be part of this exciting project.” While the S-1 filing represents a significant first step, 21Shares must still submit a 19b-4 filing—a formal request that the SEC must approve to amend the rules of a national securities exchange to allow the ETF to trade. This is where the process becomes more uncertain, as the SEC has yet to give clear guidance on whether meme coins like Dogecoin meet the criteria for spot ETF approval. Nonetheless, optimism remains high. Bloomberg ETF analysts James Seyffart and Eric Balchunas have estimated a 75% chance that the SEC will approve a spot Dogecoin ETF this year, reflecting a noticeable shift in regulatory attitudes. On the decentralized prediction platform Polymarket, traders currently assign a 64% probability to a DOGE ETF approval in 2025. This environment is ripe for what Seyffart refers to as a “spaghetti cannon approach”, where issuers are testing the limits of what the SEC might approve under the current leadership. “Issuers will try to launch many different things and see what sticks,” Seyffart said in February. Beyond US borders, 21Shares is already taking steps to expand its Dogecoin product suite. Also on April 9, the firm announced the launch of a fully backed Dogecoin exchange-traded product (ETP) on Switzerland’s SIX Swiss Exchange, in partnership with House of Doge. This European version of the DOGE fund will trade under the ticker “DOGE” and will carry a 2.5% management fee. By offering the product first in Europe, 21Shares is clearly testing international markets while building momentum ahead of a possible US launch. The firm has followed a similar strategy with its Bitcoin and Ethereum products, some of which launched in Europe well before regulatory approvals came through in the US. The Expanding Crypto ETF Landscape 21Shares is already among the most active players in the crypto ETF arena. Its US offerings currently include only spot Bitcoin (BTC) and Ether (ETH) ETFs, but its ambition goes far beyond the two leading cryptocurrencies. The company filed for a spot Polkadot (DOT) ETF in February and previously filed for a spot XRP ETF in 2024. Dogecoin , originally launched in 2013 as a satirical response to the wild world of cryptocurrencies, has proven remarkably resilient. What began as a joke has evolved into a cultural and financial force, buoyed by grassroots support, viral online content, and endorsements from high-profile figures like Elon Musk. A Turning Point for Meme Coins? If approved, the 21Shares Dogecoin ETF would be a watershed moment not only for Dogecoin but for the entire category of meme coins. With regulators seemingly more open to novel crypto assets—and institutional players like Coinbase and 21Shares backing them—Dogecoin might just lead the way in rewriting the rules of what’s considered investable in the world of finance.