Cboe Seeks SEC Approval for Ethereum Spot ETF Options Trading

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The Chicago Board Options Exchange (Cboe) has submitted a 19b-4 request to the U.S. Securities and Exchange Commission (SEC) to list and trade options contracts for Ethereum Spot ETFs. The exchange is pushing for an expedited approval process for the regulatory changes.

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Cboe Seeks SEC Approval for Ethereum Spot ETF Options Trading

According to BeInCrypto, this request aims to allow Ethereum ETF options to trade similarly to other options contracts. The Cboe BZX exchange has proposed an amendment to Rule 19.3 to facilitate the listing and trading of Ethereum ETF options. The request covers Bitwise Ethereum ETF, Grayscale Ethereum Trust, Grayscale Mini Trust, and any Ethereum-holding trust.

Cboe emphasized that introducing Ethereum ETF options would offer investors a lower-cost way to gain exposure to Ethereum while also providing a tool for risk management.

SEC’s Concerns and Delays

Cboe has described this proposal as a competitive request, referring to a similar application by NYSE American. However, the SEC has twice delayed its decision on this proposal.

The SEC has cited concerns about market manipulation, investor protection, and maintaining a fair trading system, aligning with Section 6(b)(5) of the Securities Exchange Act of 1934. The request remains under review.

What Happens If the Request Is Approved?

If approved, Ethereum ETF options contracts will follow the same rules as other options contracts. This includes listing requirements, expiration dates, strike prices, price increments, margin rules, account management, and trading halts under specific conditions.

This regulatory framework already applies to options contracts backed by precious metals ETFs and Bitcoin ETFs. Nate Geraci, president of The ETF Store, noted that Bitcoin Spot ETF options were approved eight to nine months after their ETF launch. The Ethereum Spot ETF market is now approaching a similar timeline.

Strong Demand for Ethereum Spot ETFs

Ethereum Spot ETFs have seen growing investor demand, recording five consecutive days of positive net inflows. On February 4, 2025, data from SoSo Value showed that Ethereum ETFs registered a $307.77 million net daily inflow, marking their largest single-day inflow of the year.

With increasing institutional interest and ongoing regulatory discussions, Ethereum options trading could soon become a reality, further integrating Ethereum into traditional financial markets.

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