Options Trading for Ether ETFs: NYSE American’s Bid to Include Grayscale and Bitwise Funds

• NYSE American proposes listing options for Ether ETFs managed by Grayscale and Bitwise, pending SEC approval.
• This move aims to offer investors cost-effective Ether exposure and hedging tools, with a decision expected within 21 days.

According to a filing on August 7, 2024, the New York Stock Exchange (NYSE) American LLC has proposed a rule change to the Securities and Exchange Commission (SEC) that would permit the listing and trading of options for three Ether exchange-traded funds (ETFs) managed by Grayscale and Bitwise.

The proposal includes the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini Trust (ETH). It is worth noting that the SEC has initiated public feedback on the proposed Ethereum ETFs from Grayscale and Bitwise, as recently reported by CNF.

Potential Benefits of NYSE American’s Proposal for Ether ETF Options

NYSE American argues that this change would provide investors with a cost-effective investment tool for Ether exposure and a hedging mechanism for related positions. Comments on this proposal are expected within 21 days.

This request follows a similar proposal by Nasdaq to allow options trading on the BlackRock iShares Ethereum Trust (ETHA), with both exchanges awaiting SEC approval amid ongoing delays for options on spot Bitcoin ETFs.

Following a recent CNF update on the Spot Ether ETF surging to $1.1 billion in trading volume, challenging Bitcoin dominance, analysts believe that Ethereum’s price will follow a similar trajectory to Bitcoin post-ETF launch. According to CoinMarketCap data today, Ethereum (ETH) is trading at $2,445.16, a decrease of 1.28% in the past day and 23.32% in the past week. See ETH price chart below.