NYSE Files for SEC Approval on Grayscale and Bitwise Ether ETF Options

The New York Stock Exchange (NYSE) has filed with the US Securities and Exchange Commission (SEC) for a rule change that would allow it to list and trade an Ethereum spot exchange-traded fund (ETF) options.

In an August 7th filing, NYSE asked the regulator to permit it to trade options for three Ether ETFs issued by Grayscale and Bitwise. If approved, the stock exchange would offer options trading for Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and Bitwise ETF (ETHW).

The application came a day after Nasdaq and leading Bitcoin spot ETF issuer BlackRock filed to list and trade the options product on the stock exchange. Grayscale and Bitwise become the second and third asset managers with a publicly traded Ether spot ETF to make the rule-change application.

The SEC would allow comments on the application for the next 21 days.

Diversification for Investors: NYSE

“The Exchange believes that offering options on Ether ETPs, including the Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETF), and the Grayscale Ethereum Trust Mini, will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions,” the filing said.

Options trading would allow investors to either buy and hold spot Ether ETF products, trade short-term price movements on futures Ether ETFs, or short or long Ether ETF prices at a pre-determined price on options. This is another option for investors to gain exposure to Ethereum without actually owning the asset.

Notably, approving an Ethereum options ETF looks unlikely in the short term, as the SEC has delayed applications for a similar product for the Bitcoin spot ETF. Nasdaq, the Chicago Board Options Exchange (CBOE), and the NYSE are applicants of the delayed spot Bitcoin ETF options trading.