SEC seeks public input on NYSE proposal for Ethereum ETF options SEC seeks public input on NYSE proposal for Ethereum ETF options
Market observers said an approval for these products could occur by next year.
2 min read
Updated: Aug. 8, 2024 at 10:29 am UTC
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The US Securities and Exchange Commission (SEC) is inviting public comments on a proposal from New York Stock Exchange (NYSE) American LLC to list and trade options on Bitwise and Grayscale‘s spot Ethereum exchange-traded funds (ETFs), according to an Aug. 7 filing.
The SEC stated:
“The Exchange proposes to amend Rule 915 to permit the listing and trading of options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETH), the Grayscale Ethereum Mini Trust, and any trust that holds ether.”
Options are derivatives that provide the right, but not the obligation, to buy or sell an asset, such as a stock or ETF, at a set price by a specified date. They offer a cost-effective way to increase purchasing power and are commonly used by institutional investors to manage risk.
NYSE argues that adding options on ETH ETFs will offer investors an economical means to gain exposure to spot Ethereum. It also suggested that these options will provide a valuable hedging tool for managing risks associated with the digital asset.
It added:
“The Exchange believes that offering options on a competitively priced ETF based on spot ether will benefit investors by providing them with an additional, relatively lower-cost risk management tool allowing them to manage, more easily, their positions, and associated risks, in their portfolios in connection with exposure to spot ether.”
This NYSE request follows a similar Aug. 6 proposal from Nasdaq, which requested approval to list options for BlackRock‘s iShares Ethereum Trust (ETHA).
Public comments on these proposals are due within 21 days.
Meanwhile, Bloomberg ETF analyst James Seyffart expects a final SEC decision on these proposals next year.
Additionally, he noted that SEC approval is only one step in the process, as other regulatory bodies, including the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC), must also give their approval since ETH is deemed a commodity.
Mentioned in this article
Ethereum 
Grayscale Investments 
Bitwise 
BlackRock Grayscale Ethereum Mini Trust Grayscale Ethereum Trust iShares Ethereum Trust ETF 
Bitwise Ethereum Fund Author 
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In this article
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
Bitwise
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
The Grayscale Ethereum Mini Trust (Ticker: ETH) is a pioneering investment vehicle designed to provide investors with exposure to Ethereum (ETH) through a regulated security format.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
The iShares Ethereum Trust ETF (ETHA) by BlackRock is an innovative investment product designed to provide investors with exposure to Ethereum, one of the leading cryptocurrencies.
The Bitwise Ethereum Fund (ETHW) by Bitwise is a professionally managed investment product that provides investors with direct exposure to Ethereum (ETH).
