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The U.S. Securities and Exchange Commission (SEC) invited public comments on the potential approval of options trading for three spot Ethereum exchange-traded funds (ETFs).
The regulatory body is considering whether to allow the Cboe Exchange, Inc. to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. This request for feedback was noted in a regulatory filing posted on Tuesday.
The SEC’s call for public input marks a critical step in the regulatory process for these investment products. Interested parties have 21 days from the date of publication in the Federal Register to submit their comments.
Following the close of the comment period, the SEC will have the options to either approve, disapprove, or institute proceedings regarding the proposed options trading for the ETFs.
The introduction of options trading on spot Ethereum ETFs is a significant development, considering the SEC’s history with digital asset investment products.
Although several spot Ethereum ETFs received SEC approval in May 2024, the agency has yet to approve options trading for these funds. The move to solicit public comments indicates the SEC’s ongoing deliberation on the expansion of cryptocurrency-based investment offerings.
The SEC’s consideration of options trading for Ethereum ETFs follows its previous decisions regarding Bitcoin ETFs. Over a year ago, the SEC approved spot Bitcoin ETFs and subsequently authorized options trading for these products later in the year 2024.
The current evaluation of Ethereum ETF options trading suggests a continued, albeit cautious, embrace of cryptocurrency investment vehicles by U.S. regulators.
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