Cboe has filed a 19b-4 application with the SEC for the approval of trading options on spot Ethereum ETFs, seeking fast-track consent for this regulatory adjustment.
The filing outlines that Ethereum fund options will be traded in a manner similar to other fund share options on the platform.
Cboe Aims for Ethereum ETF Options Trading in SEC Filing
In its recent submission, Cboe BZX Exchange has presented a modification to Rule 19.3, proposing the listing and trading of options on Ethereum ETFs. This encompasses the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and any other trust holding ETH.
According to the filing, “The Exchange believes that offering options on Ethereum Funds will benefit investors by providing them with an additional, relatively lower-cost investing tool to gain exposure to the price of Ethereum and a hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions.”
Described as a “competitive filing” by Cboe, referencing a similar submission by NYSE American, the SEC has twice delayed its decision on approving NYSE’s proposal, citing concerns about market manipulation, investor protection, and maintaining a fair trading system. These considerations fall under Section 6(b)(5) of the Securities Exchange Act of 1934, with the proposal currently pending before the SEC.
If granted approval, Ethereum ETF options will adhere to the same guidelines as other fund share options, covering listing criteria, expirations, exercise prices, price increments, margins, account management, and trading halts.
This existing framework already applies to options on precious-metal-backed commodity units and Bitcoin (BTC) Funds, approved under the current Rule 19.3(i).
Nate Geraci, president of The ETF Store, shared insights on social media regarding a possible timeline for approval, predicting a similar timeframe to that of spot BTC ETFs.
Looking back at the launch of spot BTC ETFs, which took about 8-9 months for options approval, the post suggested that a similar timeline may be expected for spot ETH ETFs in the near future.
Recent data shows strong investor demand for spot Ethereum ETFs, manifesting in five consecutive days of net inflows. On February 4, Ethereum ETFs experienced a daily net inflow of $307.77 million, the highest for 2025.
As of February 5, the ETFs boasted a record total trading volume of $1.5 billion, with daily net inflows reaching $18.11 million on that day alone, leading to overall net inflows amounting to $3.17 billion.
Additionally, top crypto platforms in February 2025 include Phemex, Bybit, Margex, BingX, and Coinex, catering to the evolving needs of crypto traders.