Cboe BZX Exchange Proposes Amendments to Trade Options on Spot Ethereum ETFs

Cboe BZX Exchange has proposed to amend Rule 19.3 to allow the exchange to list and trade options on spot Ethereum exchange-traded funds (ETFs). This proposal is described as a “competitive filing” similar to a pending proposal submitted by NYSE American to the U.S. Securities and Exchange Commission.

The specific ETFs referenced in the filing include the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, along with any trust that holds ether.

Currently, Rule 19.3 permits options trading on fund shares tied to various specific investments including financial instruments, money market assets, precious metals, and Bitcoin. The filing asserts that Ethereum funds operate in a similar manner, being Ethereum-backed ETFs structured as trusts.

Cboe BZX believes that introducing options for Ethereum funds would provide investors with a relatively lower-cost tool for gaining exposure to spot ether along with a hedging vehicle for managing their ether-related investments.

Options trading on spot Bitcoin ETFs commenced in November 2024, enhancing liquidity and price discovery for larger institutions while offering retail traders speculation opportunities.

On a recent trading day, nine spot Ethereum ETFs accumulated $1.5 billion in trading volume amid a decline in the crypto market, surpassing the previous record of $1.22 billion. As of now, ETH is trading down 1.62% to approximately $2,746, with total trading volume in the last 24 hours reaching $40.2 billion.