US regulators are currently assessing a proposal to introduce the first spot Ether exchange-traded fund (ETF) options on NYSE American’s securities exchange. As detailed in a document filed on November 8th, if given the green light, the New York Stock Exchange (NYSE) would have the authority to list options on Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and “any trust that holds Ether.”
This move by the Securities and Exchange Commission (SEC) intimates a possible relaxation of their stance on cryptocurrency products. This change arrives particularly after the election of Donald Trump on November 5th, who is known for his pro-cryptocurrency views. Earlier, in September and October, the SEC gave the nod to requests from three exchanges, including NYSE American, Nasdaq, and Cboe Exchange, to trade options on 11 Bitcoin ETFs, which included both Bitwise and Grayscale’s proposals.
For the ETFs to begin trading, however, they still require approval from two other regulatory bodies, the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC). Despite a delay by the SEC in deciding on a proposal permitting Cboe Exchange to list options related to popular spot Ether funds, a deadline for this decision has been extended from October 19th to December 3rd.
ETF options serve as contracts that assign the right to buy or sell, or “call” or “put” in trader speak, an asset at a particular price. The election of President Trump also paves the way for over half a dozen crypto ETFs pending regulatory sanction to list in the US. In 2024, many asset managers submitted multiple regulatory filings to list ETFs holding alternative digital coins, such as Solana and Litecoin, amongst others. Crypto index ETFs, which are intended to hold diverse baskets of tokens, are also awaiting approval. As of November 4, the SEC began evaluating Grayscale’s application to list the first ETF to hold a varied selection of cryptocurrencies, incorporating several alternative coins.