Grayscale Investments and Bitwise have joined the effort to introduce options trading on spot Ethereum ETF products.
Grayscale Investments and Bitwise have submitted filings with the US Securities and Exchange Commission (SEC) to include Options products in their spot Ethereum ETF offering. The New York Stock Exchange (NYSE) is contracted as the stock trading platform to list the products, if approved, according to a filing lodged by both asset managers.
The Obstacle of Spot Ethereum ETF Options
This demand for a rule modification to list Options on the spot Ethereum ETF is made after the market regulator approves the base product. Nevertheless, institutional investors desire more than the initial ETF offering. Ethereum ETF issuers, including Grayscale and BlackRock, are now responding to the increasing demand for the product.
The market regulator, Gary Gensler, continues to grapple with the issue of crypto ETF options. The hazardous nature of an Options-linked crypto fund is far-fetched even though it required numerous concessions to allow Bitcoin and ETH ETFs.
Nevertheless, proponents of this product contend that it is appropriate for crypto variants similar to traditional investment products linked to Options. The filings are now lodged, and comments are due within 21 days.
The NYSE contended that the listing and eventual trading of Options on Grayscale Ethereum Trust (ETH) will provide investors with greater exposure to the coin. Furthermore, the same applies to the Bitwise Ethereum ETF and the Grayscale Ethereum Trust Mini. Grayscale and Bitwise are among the top issuers of this product, and their combined weight and influence for approval could cause the market regulator to reevaluate its position.
This proposition is further strengthened by the fact that BlackRock is also participating, as evidenced by its prior successes. Although the options bid on spot Bitcoin ETF has not yet been sanctioned, this may not significantly impact Ethereum’s prospects.
Is it the appropriate time to expand the Grayscale ETF?
Grayscale’s decision to exchange its ETF product suite is timely. The digital currency ecosystem is the subject of significant attention in light of the Donald Trump and Kamala Harris election.
Judge Analisa Torres’ verdict on the Ripple lawsuit against the United States has also elicited a celebratory response from the industry today. The Judge ordered the blockchain payments firm to pay a sanction of $125 million for the sale of XRP to institutional investors.
The company will now concentrate on development initiatives in the future, according to CEO Brad Garlinghouse, following the ruling.
