Cboe has submitted a 19b-4 filing to the SEC, aiming for approval to list and trade options on spot Ethereum ETFs. In this latest filing, Cboe BZX Exchange requests expedited approval for a rule adjustment that would allow trading of options on Ethereum-based ETFs, following in the footsteps of spot Bitcoin ETF options approved in November 2024.
The proposed options would cover funds like the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, among others holding ETH. According to the filing, these options will be traded similarly to other fund share options, offering investors a new, lower-cost tool to gain exposure to Ethereum’s price and a hedging vehicle for Ethereum-related products.
Competitive Landscape: Cboe vs. NYSE
Cboe’s proposal references a similar submission by NYSE American, which is currently pending SEC approval. The SEC has twice delayed its decision on the NYSE’s proposal due to concerns over market manipulation and investor protection—considerations under Section 6(b)(5) of the Securities Exchange Act of 1934. However, if approved, Ethereum ETF options will follow the same framework that governs Bitcoin ETF options and precious metal-backed commodity units.
Investor Demand for Ethereum ETFs Grows
The timing of this filing is significant as spot Ethereum ETFs have seen strong investor demand, setting records for both net inflows and trading volume. On February 4, 2025, Ethereum ETFs witnessed their highest single-day inflow of $307.77 million. The following day, February 5, saw an additional $18.11 million in inflows, bringing the total to $3.17 billion.
This surge in interest aligns with broader trends observed after the launch of spot Bitcoin ETF options, with analysts expecting a similar trajectory for Ethereum ETF options. The window for SEC approval, based on past ETF options timelines, could open as early as next month.
Conclusion:
The SEC’s decision on Cboe’s Ethereum ETF options filing could be pivotal for the market. As demand for Ethereum ETFs continues to rise, approval of options trading could offer investors new strategies for managing their exposure to Ethereum, further boosting liquidity and trading volume in the Ethereum market.
