The U.S. SEC's approval of Ethereum ETF options trading on April 10, 2025, is expected to increase market volatility in the short term. Options trading on ETFs like BlackRock’s iShares Ethereum Trust and Grayscale’s Ethereum Trust may attract institutional investors, boosting liquidity but amplifying price swings. Historical trends post-ETF approvals suggest potential sharp rallies followed by corrections, with Ethereum’s price recently surging 14% to $1,675 after the announcement. However, Bloomberg’s James Seyffart noted the market had priced in this approval, potentially limiting immediate volatility spikes. Investors should brace for heightened fluctuations, especially if staking approvals follow, which could drive further institutional interest and price instability in the second half of 2025.