TLDR
- NYSE American has requested SEC approval to list options for three Ether ETFs
- The ETFs in question are from Grayscale and Bitwise
- Nasdaq also recently requested approval for options on BlackRock’s Ether ETF
- The SEC has not yet approved options trading on spot Bitcoin ETFs
- Comments on the NYSE American proposal are due within 21 days
The New York Stock Exchange (NYSE) American and Nasdaq are taking steps to expand the trading options available for Ethereum-based exchange-traded funds (ETFs).
Both exchanges have recently filed requests with the U.S. Securities and Exchange Commission (SEC) to allow the listing and trading of options on several Ether ETFs.
On August 7, NYSE American submitted a proposal to the SEC seeking permission to list and trade options for three Ether ETFs.
The funds in question are the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH). These ETFs are currently the only spot Ether funds listed on the NYSE American exchange.
NYSE American argued that offering options on these Ether ETFs would benefit investors in several ways. The exchange stated that options would provide a relatively low-cost investment tool for gaining additional exposure to Ether.
Additionally, NYSE American suggested that options trading would offer investors a hedging mechanism to meet their investment needs related to Ethereum products and positions.
This move by NYSE American follows a similar request made by Nasdaq just one day earlier. On August 6, Nasdaq asked the SEC for permission to allow options trading on the BlackRock iShares Ethereum Trust (ETHA).
Like NYSE American’s proposal, Nasdaq’s request would apply exclusively to the BlackRock fund, which is currently the only Ether ETF listed on the Nasdaq exchange.
The timing of these requests is noteworthy, as spot Ether ETFs only began trading on U.S. exchanges in May 2024. On their first day of trading, these products generated more than $1.019 billion in cumulative trading volume, according to data compiled by The Block Pro Research.
While exchanges are eager to expand options for Ether ETFs, it’s important to note that the SEC has not yet authorized options trading on spot Bitcoin ETFs, which launched in January and now manage approximately $50 billion in assets.
In July, the SEC informed six options exchanges, including Nasdaq, that more time was needed to make a decision on their requests to list options on spot Bitcoin ETFs.
The public now has an opportunity to weigh in on the NYSE American proposal. Comments on the filing are due within 21 days of its submission. This comment period allows interested parties to provide feedback and insights that the SEC may consider in its decision-making process.
