Originally published on: November 08, 2024
US regulators are currently evaluating a proposal to introduce options tied to spot Ethereum (ETH) exchange-traded funds (ETFs) on NYSE American’s securities exchange, as per a recent filing on Nov. 8.
If given the green light, NYSE would have the authorization to list options for Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and any other trust holding Ether, as stated in the filing.
This move by the SEC suggests a potential shift in the agency’s perspective on cryptocurrency products, especially following the election victory of crypto-friendly Donald Trump on Nov. 5.
The approval of Bitcoin (BTC) ETF options has already been granted to three exchanges — NYSE American, Nasdaq, and Cboe Exchange — in September and October, covering 11 BTC ETFs including offerings from Bitwise and Grayscale.
Notably, the same trio of exchanges had requested the SEC to consider listing ETH ETF options back in August.
Jeff Park, the Head of Alpha Strategies at Bitwise Invest, anticipates that the introduction of spot BTC options on regulated US exchanges will significantly advance cryptocurrency markets, presenting lucrative opportunities for investors.
Before trading can begin, final approval from two additional oversight bodies, the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC), is required.
A recent delay in the decision-making process by the SEC regarding a proposed rule change for Cboe Exchange’s ETH options listing reflects the agency’s thorough evaluation, shifting the ruling deadline to Dec. 3 from the initial Oct. 19.
Donald Trump’s victory in the presidential election signals positive prospects for more than half a dozen pending crypto ETF listings in the US.
Looking ahead, the year 2024 brought numerous ETF launches as asset managers pursued regulatory approval for ETFs holding various altcoins like Solana (SOL), XRP, Litecoin (LTC), among others.
Exciting developments in the pipeline include planned crypto index ETFs structured to hold diversified portfolios of tokens, paving the way for broader participation in the crypto market.
Furthermore, the SEC’s ongoing review of Grayscale’s proposal to launch the first ETF holding a mix of cryptocurrencies underscores the growing interest in diversified crypto investment products.
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