NEW YORK, Thursday, August 15, 2024– The New York Stock Exchange (NYSE) American has filed a proposal with the Securities and Exchange Commission (SEC) seeking to list and trade options for three Ether exchange-traded funds (ETFs) managed by Grayscale and Bitwise.
The filing, submitted on August 7, details plans for options on the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH). NYSE American argues that offering options trading on these Ether ETFs would benefit investors by providing a cost-effective way to gain additional exposure to Ether, along with a valuable hedging tool for managing their existing Ether positions.
The SEC is expected to receive public comments on the proposal within the next 21 days. If approved, the rule change would solely apply to the Grayscale and Bitwise Ether ETFs, currently the only spot Ether funds listed on NYSE American.
This initiative follows a similar request from the Nasdaq options exchange, which petitioned the SEC on August 6 to permit options trading on the BlackRock iShares Ethereum Trust (ETHA). Both exchanges face a potential delay in approval, as the SEC has yet to greenlight options trading on spot Bitcoin ETFs.
Despite the launch of spot Bitcoin ETFs in January, which now hold significant assets under management, the SEC has taken a cautious approach. In July, the regulatory body informed options exchanges, including Nasdaq, that more time was needed to review applications for spot Bitcoin ETF options.
On August 7, the Ethereum spot ETF market witnessed net outflows of $23.6766 million. The Grayscale Ethereum Trust (ETHE) saw a significant outflow of $31.8571 million, while the Fidelity Ethereum ETF (FETH) attracted $4.7046 million in new investments. Despite these fluctuations, the total net asset value of Ethereum spot ETFs remains strong at $6.626 billion.
BlackRock’s iShares Ethereum Trust (ETHA) has reportedly seen substantial inflows, raising its total to around $900 million since its launch in July. This inflow positions BlackRock’s ETF among the top six best-performing ETFs launched in 2024.
