Cboe files a 19b-4 request with the SEC to approve Ethereum ETF options trading
Cboe has submitted a filing to the SEC to get approval for trading options on spot Ethereum ETFs. This includes popular funds like Bitwise and Grayscale’s Ethereum ETFs. The goal is to speed up the regulatory process for these options. The proposal states that Ethereum ETF options will follow the same rules as other fund share options on the Cboe platform.
In the filing, Cboe BZX Exchange wants to change Rule 19.3 to allow trading of options on Ethereum ETFs. This would cover funds like the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust, along with other trusts that hold Ethereum.
Cboe believes that offering Ethereum ETF options would provide investors with a cost-effective way to engage with Ethereum’s price changes. It would also help investors manage risks related to their Ethereum investments. Cboe refers to this as a “competitive filing,” especially since NYSE American has made a similar request. However, the SEC has delayed decisions on NYSE’s proposal twice due to worries about market manipulation and investor protection.
If the SEC approves Cboe’s request, Ethereum ETF options will follow the same rules as other fund share options. This includes listing requirements, expiration dates, and margin rules. A similar system is already in place for Bitcoin options and commodity-backed assets.
Nate Geraci, president of The ETF Store, shared insights on the approval timeline. He mentioned that it took about eight to nine months for Bitcoin ETF options to be approved. Therefore, Ethereum ETF options might see a similar timeline, possibly starting next month.
Interest in Ethereum ETFs is growing. Recently, these funds experienced significant net inflows, with $307.77 million in a single day. Earlier, they reached a trading volume of $1.5 billion in one day. These trends indicate a rising demand for Ethereum ETFs, which supports the push for options trading. However, the SEC still needs to address regulatory concerns before making a final decision.
