Breaking: Grayscale and Bitwise File To Launch Options On Ethereum ETF
Highlights
- Grayscale and Bitwise are in the race to launch Options on Ethereum ETF
- Options on crypto ETF is generally out of the SEC's comfort zone
- Will growing demand and US election force a shift in stance?
Grayscale Investments and Bitwise have submitted filings with the US Securities and Exchange Commission (SEC) to list Options products on their spot Ethereum ETF offering. According to a filing lodged by both asset managers, the New York Stock Exchange (NYSE) is contracted as the stock trading platform to list the products, if approved.
Options on Spot Ethereum ETF: The Challenge
This demand for a rule change to list Options on spot Ethereum ETF comes after the markets regulator has approved the base product. However, institutional investors want more than just the original ETF offering. Growing demand has now pushed Ethereum ETF issuers like BlackRock, and now Grayscale to make move for the product.
Options on crypto ETF remains a gray area for the Gary Gensler-led markets regulator. While it took a lot of concessions to permit Bitcoin and ETH ETFs, the risky nature of an Options linked crypto fund sounds far fetched.
However, proponents of this product argue that with traditional investment products linked to Options, then it is the right for crypto versions as well. With the filing lodged, comments on the filings are notably due in 21 days.
As the NYSE argued, the listing and eventual trading of Options on Grayscale Ethereum Trust (ETH) will offer investors more exposure to the coin. Additionally, the same holds true for Bitwise Ethereum ETF and Grayscale Ethereum Trust Mini. With Grayscale and Bitwise among the top issuers of this product, their combined weight and influence for approval might sway the market regulator into reconsidering its stance.
That BlackRock is also joining this bid is also a strengthening factor based on its precedents. Though the options bid on spot Bitcoin ETF has not gained approval yet, this might not impact Ethereum’s chances moving forward.
Right Time for Grayscale ETF Expansion?
The Grayscale move to exchange its ETF product suit is timely. There is a lot of focus on the digital currency ecosystem at the moment with the Donald Trump and Kamala Harris election showdown.
The industry is also currently in celebratory mode today as Judge Analisa Torres issued her verdict on Ripple lawsuit against the US. The Judge ordered the blockchain payments firm to pay a fine of $125 million for selling XRP to institutional investors.
Following the ruling, CEO Brad Garlinghouse says the company will now focus on growth initiatives moving forward.
- Grayscale’s Crypto Index Fund Sees ‘Solid Start’ as SOL, XRP Institutional Demand Climbs
- Senate Democrats Urge Republicans for ‘True Collaboration’ to Quickly Pass CLARITY Act
- Crypto Market Correction Intensifies As S&P 500, DXY Enter Dangerous Territory
- BitGo To Follow Gemini’s Footsteps With US IPO After 4x Revenue Surge
- Michael Saylor Predicts Bitcoin Will Outperform S&P 500 Forever
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
