Originally published on: November 08, 2024
The Securities and Exchange Commission (SEC) is currently evaluating a proposal to introduce the first options linked to spot Ether (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 go-ahead to offer options for Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and any other trust that holds Ether, according to the filing.
This move by the SEC indicates a potential shift in attitude towards cryptocurrency products, especially following the presidential election win of crypto-friendly Donald Trump on Nov. 5.
In a previous development, the SEC has already approved applications from three major exchanges – NYSE American, Nasdaq, and Cboe Exchange – to trade options on 11 Bitcoin (BTC) ETFs, which include offerings from Bitwise and Grayscale.
Furthermore, the same exchanges had sought permission from the SEC in August to list ETH ETF options, subsequently leading to the SEC’s prolonged evaluation process.
Approval for listing spot BTC options on regulated US exchanges is expected to mark a significant milestone in cryptocurrency markets, providing lucrative opportunities for investors, as stated by Jeff Park, Bitwise Invest’s head of alpha strategies.
Despite the positive indicators, the commencement of trading remains pending regulatory approval from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).
The SEC recently extended the deadline for deciding on a proposed rule change to allow Cboe Exchange to list options associated with popular spot ETH funds, now scheduled for Dec. 3.
Moreover, Trump’s election win has paved the way for numerous proposed crypto ETFs awaiting regulatory approval to launch in the US, offering a promising outlook for asset managers seeking to diversify their portfolios.
Looking ahead, there is increasing interest in ETFs holding altcoins like Solana (SOL), XRP, and Litecoin (LTC), with regulatory filings suggesting a surge in demand for crypto index ETFs encompassing a range of tokens.
In a forward-looking move, the SEC has begun reviewing Grayscale’s petition to establish the first ETF holding a diversified basket of cryptocurrencies, further signaling a potential shift towards embracing digital assets.
With evolving trends and regulatory shifts shaping the landscape of the crypto market, industry players are closely monitoring developments to capitalize on emerging opportunities. Stay informed with our Crypto Biz newsletter for exclusive insights into blockchain and crypto business trends delivered weekly. Subscribe today and gain a competitive edge in navigating the dynamic market of digital assets.
