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Coinpaprika 2025-02-06 08:40:02

Cboe Seeks SEC Approval for Ethereum ETF Options Amid Rising Demand

Cboe has officially submitted a 19b-4 filing to the SEC, seeking approval to list and trade options on spot Ethereum ETFs. This request covers funds like Bitwise and Grayscale’s Ethereum ETFs and aims to speed up regulatory approval. The proposal outlines that Ethereum ETF options would follow the same rules as other fund share options on the platform. In its latest submission, the Cboe BZX Exchange suggests modifying Rule 19.3 to allow trading of options on Ethereum ETFs. This includes funds such as the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust , along with any other ETH-holding trusts. According to the filing, the exchange argues that introducing Ethereum ETF options would give investors an affordable tool for gaining exposure to Ethereum’s price movements. It would also serve as a hedging method for managing Ethereum-related investments. Cboe describes this request as a “competitive filing,” noting that NYSE American submitted a similar proposal. However, the SEC has delayed its decision on NYSE’s request twice, citing concerns over market manipulation, investor protection, and fair trading practices. These concerns fall under Section 6(b)(5) of the Securities Exchange Act of 1934. If approved, Ethereum ETF options would be subject to existing rules for other fund share options. These include listing requirements, expiration dates, exercise prices, price increments, margin rules, trading halts, and account management. A similar framework already applies to options on Bitcoin ( BTC ) funds and commodity-backed assets such as precious metals. These were approved under Rule 19.3(i). Nate Geraci, president of The ETF Store, shared a possible timeline for approval on X (formerly Twitter). He noted that it took eight to nine months for regulators to approve options trading for spot Bitcoin ETFs. Given this timeline, Ethereum ETFs may enter a similar approval window next month. Bitcoin ETF options officially launched in November 2024, setting a precedent for how Ethereum ETF options might be handled. Meanwhile, Ethereum ETFs have seen a strong surge in investor interest. The funds recorded net inflows for five consecutive days. On February 4, Ethereum ETFs saw $307.77 million in daily net inflows , marking the largest single-day inflow of 2025. Earlier in the same week, these ETFs hit a record trading volume of $1.5 billion in a single day. On February 5, Ethereum ETFs recorded an additional $18.11 million in daily net inflows , bringing the total net inflows to $3.17 billion . These trends highlight increasing demand for Ethereum ETFs, further supporting the push for options trading. However, the final decision remains in the hands of the SEC, which continues to weigh regulatory concerns before moving forward with approvals.

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