Grayscale and Bitwise are seeking regulatory approval to offer options on their spot Ethereum exchange-traded funds (ETFs), as detailed in a recent filing with the U.S. Securities and Exchange Commission (SEC). The proposal, submitted by NYSE American LLC in collaboration with Grayscale and Bitwise, seeks a rule change to list and trade options on three specific products: the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, along with any trust holding ether.
The filing argues that introducing options on these Ethereum products would provide investors with a cost-effective tool to gain exposure to spot ether, as well as a means to hedge their positions. The exchange believes this addition will benefit investors by offering an additional layer of flexibility and risk management.
Comments on the proposal are expected within 21 days. The SEC has previously approved several spot Ethereum ETFs from major financial institutions such as BlackRock and Fidelity, which began trading last month. On their first trading day, these products together achieved over $1.019 billion in trading volume, according to Yahoo Finance and The Block Pro Research.
In contrast, while multiple firms are exploring options for spot bitcoin ETFs, these have not yet received approval from the SEC, which approved 11 spot bitcoin ETFs earlier this year in January.