Grayscale and Bitwise Pursue Ethereum ETF Options on NYSE

August 8, 2024

Grayscale and Bitwise have submitted requests for the approval of options concerning their spot Ethereum ETFs to the Securities and Exchange Commission (SEC), as outlined in a filing with the SEC. The New York Stock Exchange (NYSE) has petitioned the SEC to allow the listing and trading of options for the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH).

According to the filing, the NYSE emphasized the potential benefits for investors through options, offering a relatively lower-cost investing tool to access spot ether and serving as a hedging vehicle for managing investment requirements related to ether products and positions. This development comes on the heels of Blackrock’s request to list options for iShares Ethereum Trust (ETHA), the sole ETH ETF listed on the Nasdaq, while the ETH ETFs for Bitwise and Grayscale are both on the NYSE.

Feedback on the filing is anticipated within the next 21 days. Although the SEC greenlit Ethereum ETFs for trading on exchanges in July, it has yet to authorize options trading for Bitcoin ETFs, which were introduced in January. Since their inception, ETH ETFs have attracted $1.5 billion in net inflows, contrasting with BTC ETFs boasting a total market cap of $71 billion.

The potential introduction of options for Ethereum-based Exchange-Traded Products could usher in heightened volatility within the spot Ethereum market, necessitating future consideration from market participants.