Grayscale and Bitwise Request Approval for Ethereum Options

Grayscale and Bitwise are pushing regulators to approve options for their spot Ethereum exchange-traded funds (ETFs), as per a recent filing with the U.S. Securities and Exchange Commission (SEC).

In a filing made public on Wednesday, NYSE American LLC, along with Grayscale and Bitwise, has proposed a rule change to list and trade options on three products: the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, in addition to any trust that holds ether.

The exchange argues that offering options on Ether ETPs, including the Bitwise Ethereum ETF and the Grayscale products, would benefit investors. This would provide a relatively lower-cost investment tool for exposure to spot ether and serve as a hedging vehicle for ether-related investments.

Comments on this proposal must be submitted within 21 days.

Earlier in May, the SEC approved several spot Ethereum ETFs from major financial firms including BlackRock and Fidelity. These began trading the following month, generating over $1.019 billion in cumulative trading volume on their first day, as reported by Yahoo Finance and The Block Pro Research.

Additionally, several firms are seeking to trade options on spot bitcoin ETFs but have yet to receive SEC approval; the agency had, however, approved 11 spot bitcoin ETFs in January.