As a seasoned researcher with a keen interest in the ever-evolving world of cryptocurrencies, I must say that the recent developments regarding the potential listing of Ether options on NYSE American’s securities exchange have me intrigued and hopeful. The softening stance of US regulators towards crypto products is a promising sign for the industry, especially in light of Donald Trump’s recent election win.

Regulatory bodies in the U.S. are currently assessing an application to trade the initial Ethereum (ETH) linked options on the NYSE American’s stock market, as indicated in a document filed on November 8th.

Should it be granted, the NYSE could receive authorization to list options for investment products such as Bitwise Ethereum ETF (ETHW), Grayscale Ethereum Trust (ETHE), Grayscale Ethereum Mini Trust (ETH), and any trusts that hold Ether.

As a crypto investor, I find it encouraging that the SEC’s recent decision might indicate a shift in their approach towards cryptocurrency products. This change seems to be more apparent following the November 5th presidential election, with the crypto-friendly President Trump now in office.

SEC mulls approving Ethereum ETF options

During September and October, the Securities and Exchange Commission (SEC) granted permission for trading options on eleven Bitcoin (BTC) exchange-traded funds (ETFs), such as those offered by Bitwise and Grayscale, to three exchanges: NYSE American, Nasdaq, and Cboe Exchange.

The same three exchanges asked the SEC for permission to list ETH ETF options in August.

Speaking about cryptocurrencies, Jeff Park, the head of trading strategies at Bitwise Invest, stated in a post on September 20th that listing Bitcoin options on approved US exchanges signifies a “major milestone” for these markets and offers “highly attractive investment prospects” to investors.

To commence trading, the exchanges still need signoff from two other oversight bodies — the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).

On October 11th, the SEC postponed making a decision about a proposed rule adjustment that would allow Cboe Exchange to list options connected to various well-known Ethereum (ETH) investment funds, according to the submission.

The filing indicates that the decision date set by the agency has been moved from October 19th to December 3rd.

Options are contracts granting the right to buy or sell — “call” or “put” in trader parlance — an underlying asset at a certain price.

SEC mulls approving Ethereum ETF options

Trump’s presidency has provided the go-ahead for over a dozen proposed cryptocurrency Exchange Traded Funds (ETFs) that are currently awaiting regulatory approval to debut in the United States.

2024 saw a surge in regulatory applications from asset managers aiming to list ETFs containing various altcoins such as Solana, XRP, Litecoin, and several others.

Waiting for approval, issuers have plans to launch various crypto index ETFs, which will include a mix of different cryptocurrency tokens in their portfolios.

On November 4th, the Securities and Exchange Commission (SEC) initiated a review of Grayscale’s application to launch an ETF that would encompass a variety of cryptocurrencies, such as several alternative coins.

2024-11-09 00:11

Options are contracts granting the right to buy or sell — “call” or “put” in trader parlance — an underlying asset at a certain price.

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