SEC delays decision on NYSE options for spot Ethereum ETFs

Estefano Gomez

Nov. 8, 2024

Regulators seek further review on trading options tied to Ethereum ETFs, extending the approval timeline.

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Key Takeaways

The SEC has delayed its decision on NYSE's proposal to list and trade options on Ethereum-based ETFs.
The proposal aims to provide investors with a regulated way to hedge or leverage Ethereum price movements.

The SEC has announced a delay in its decision on NYSE’s proposal to list and trade options on several Ethereum ETFs, including the Bitwise Ethereum ETF and the Grayscale Ethereum Trust, according to an SEC filing.

NYSE filed the proposed rule change on July 23, 2024, seeking to list options on the Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and other trusts holding ether.

The proposal aims to provide investors with exposure to Ethereum price movements through options, similar to existing commodity-backed ETFs.

The SEC’s delay stems from its ongoing examination of whether the proposal meets Exchange Act requirements for preventing fraudulent practices, ensuring fair trade, and protecting investor interests.

The SEC has started a review process to evaluate the proposal further.

The filing invites public comments within 21 days and rebuttal comments within 35 days, extending the timeline but without a set date for a final decision.

If approved, the options would provide investors with a regulated framework to hedge against Ethereum price fluctuations or leverage its price movements.

NYSE’s approach would implement existing ETF options standards, including rules for listing, trading, position limits, and risk management procedures.

While options on Bitcoin ETFs have gained market acceptance, this proposal represents one of the first targeting Ethereum in the US market.

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