The post Cboe BZX Moves To List Ethereum ETF Options Amid Rising Demand appeared on BitcoinEthereumNews.com.

Cboe BZX Exchange has proposed an amendment to Rule 19.3 to allow the listing and trading of options on spot Ethereum ETF. The move follows a similar filing by NYSE American, which is pending approval by the U.S. Securities and Exchange Commission. The proposal aims to provide investors with additional trading instruments as trading volume surges. Cboe BZX Proposes Ethereum ETF Options Listing The Cboe BZX Exchange requested approval to list options that use Ethereum-backed exchange-traded funds. The filing contains the Bitwise Ethereum ETF together with the Grayscale Ethereum Trust and other such funds that hold ether as their main investment asset. The exchange explains how these funds operate similarly to commodity-based trusts thus ensuring meeting options trading requirements. – Advertisement – The proposed Ethereum ETF options trading system is an inexpensive way for investors to access spot ether markets. Through Ethereum options, institutional investors will acquire better hedging methods, while retail traders can leverage options for speculative purposes. In accordance with the exchange, the newly proposed options should improve both market liquidity and efficiency levels. The rule update grants the exchange permission to develop cryptocurrency-based financial instruments after approval from suitable authorities. Currently, the SEC reviews an application that mirrors the NYSE American proposal. Cboe BZX‘s implementation of Ethereum ETF options will support its plan to broaden market access for digital assets. The launch of options on spot Bitcoin ETFs in November 2024 set an example for future products linked to Ethereum ETFs. According to industry analysis, the introduction of Ethereum ETF options has the potential to create stable ether prices because of increased market liquidity. Through the use of options as derivatives large investors can protect themselves from price changes thus minimizing general market volatility. Retail traders apply options to make directional bets which brings additional market participants.…

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Filed under: News - @ February 6, 2025 9:21 am