NYSE Applies with SEC to List Options for Ether ETFs by Grayscale and Bitwise
The New York Stock Exchange (NYSE) American has proposed a rule change to list and trade options for three Ether exchange-traded funds (ETFs) managed by Grayscale and Bitwise.
The move, detailed in an August 7 filing with the Securities and Exchange Commission (SEC), seeks to include options for the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH).
NYSE American said that the introduction of options trading on these Ether ETFs would benefit investors by providing a cost-effective means of gaining additional exposure to Ether.
Moreover, the filing highlighted the potential for options trading to serve as a valuable hedging tool for investors managing their ETH-related investments and positions.
The SEC is now expected to receive comments on this proposal within the next 21 days.
If approved, the rule change would specifically apply to the Grayscale and Bitwise Ether ETFs, the only spot Ether funds currently listed on the NYSE American exchange.
The initiative by NYSE American coincides with a similar request from the Nasdaq options exchange, which, on August 6, petitioned the SEC to permit options trading on the BlackRock iShares Ethereum Trust (ETHA).
Like NYSE American’s proposal, Nasdaq’s request is exclusively aimed at BlackRock’s fund, the sole Ether ETF listed on the Nasdaq exchange.
Both exchanges might face a protracted waiting period for SEC approval, as the regulatory body has yet to greenlight options trading on spot Bitcoin ETFs.
Despite the launch of these Bitcoin ETFs in January, which now hold approximately $50 billion in assets under management, the SEC has taken a cautious approach.
In July, the SEC indicated to several options exchanges, including Nasdaq,
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