SEC mulls approving Ethereum ETF options

United States regulators are reviewing a request to list the first options tied to spot Ether (ETH) exchange-traded funds (ETFs) on NYSE American’s securities exchange, according to a Nov. 8 filing.

If approved, NYSE would be authorized to list options on Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and “any trust that holds Ether,” the filing said.

The SEC’s decision is the latest sign the agency may be softening its stance on cryptocurrency products, particularly after crypto-friendly Donald Trump’s Nov. 5 presidential election win.

Related: Investment managers eye ‘extraordinary upside’ from BTC options debut

In September and October, the SEC approved applications from three exchanges — NYSE American, Nasdaq, and Cboe Exchange — to trade options on 11 Bitcoin (BTC) ETFs, including Bitwise and Grayscale’s.

The same three exchanges asked the SEC for permission to list ETH ETF options in August.

Listing spot BTC options on regulated US exchanges will mark a “monumental advancement” in cryptocurrency markets and creates “extremely compelling opportunities” for investors,” Jeff Park, Bitwise Invest’s head of alpha strategies, said in a Sept. 20 X post. 

To commence trading, the exchanges still need signoff from two other oversight bodies — the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). 

On Oct. 11, SEC delayed deciding on a proposed rule change permitting Cboe Exchange to list options tied to several popular spot ETH funds, the filing said.

The deadline for a ruling from the agency has been pushed back from Oct. 19 to Dec. 3, according to the filing.

Trump’s presidential win is also a greenlight for more than half a dozen proposed crypto ETFs waiting on regulatory approval to list in the US.

In 2024, asset managers submitted a flurry of regulatory filings to list ETFs holding altcoins, including Solana SOL, XRP XRP, and Litecoin LTC, among others.

Issuers are also waiting on approval for several planned crypto index ETFs designed to hold diverse baskets of tokens.

On Nov. 4, the SEC started reviewing Grayscale’s request to list the first ETF to hold a diverse basket of cryptocurrencies, including several altcoins.

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