Cboe BZX is taking steps to introduce options on funds based on Ethereum ETFs, similar to the recent proposal by NYSE American.
Cboe BZX's Plans for Ethereum ETF Options
Cboe BZX has proposed listing and trading options on Ethereum ETFs, competing with NYSE American's proposal. This could include funds such as Bitwise Ethereum ETF and Grayscale Ethereum Trust, as well as other ether-backed investment vehicles.
Success with Bitcoin ETF Options
Following the successful launch of options on Bitcoin ETFs in November 2024, Cboe BZX aims to expand investor capabilities with offerings on Ethereum ETFs. This could provide investors with a more accessible risk management tool and increase liquidity.
Market Reaction to Ethereum ETF Trading Volume
US spot Ethereum ETF trading volume surged past $1.5 billion for the first time amid market reactions to new trade tariffs. These conditions created an opportunity for increased liquidity and price stabilization in the options market.
Cboe BZX's initiative could significantly impact the development of the cryptocurrency options market, increasing liquidity and providing investors with new risk hedging opportunities.
