- Cboe has filed a 19b-4 proposal to list and trade options on spot Ethereum ETFs.
- The proposal follows strong investor demand for Ethereum ETFs.
- NYSE American submitted a similar proposal, which remains subject to SEC approval.
The Cboe BZX Exchange has officially filed a 19b-4 application with the U.S. Securities and Exchange Commission (SEC), requesting permission to list and trade options on exchange-traded funds (ETFs) that hold spot Ethereum.
This move represents a key step by Cboe to broaden investor access to Ethereum, reflecting growing demand across the cryptocurrency market.
Cboe seeks to expand its investment products
Cboe’s proposal aims to widen the range of investment instruments available to market participants. Allowing options trading on Ethereum ETFs would give investors an accessible way to gain exposure to Ethereum price movements.
The 19b-4 filing mentions funds such as those managed by Bitwise and Grayscale, specifically the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust, which hold Ethereum as their primary asset.
The exchange states these options would not only provide another avenue for investors to access Ethereum, but would also serve as important hedging tools against the inherent volatility of the cryptocurrency market.
Notably, Cboe’s filing follows a similar proposal from NYSE American, which has not yet secured SEC approval. The regulator has raised concerns in that review about market manipulation, investor protection, and ensuring a fair trading environment.
The SEC’s caution is rooted in Section 6(b)(5) of the Securities Exchange Act of 1934, which emphasizes safeguarding investors and maintaining fair and orderly markets.
Despite these regulatory hurdles, Cboe presents its proposal as a competitive response to NYSE’s initiative, suggesting there is market interest in seeing these financial products develop.
Cboe’s filing stresses that options on Ethereum ETFs would be governed by the same rigorous rules that apply to other fund options on its platform, including listing standards, margin requirements, and trading halts.
This regulatory alignment is intended to demonstrate to the SEC that the proposal conforms to existing frameworks, similar to those applied to bitcoin ETF options that were approved under comparable oversight.
Rising investor interest in Ethereum ETFs
The timing of Cboe’s filing coincides with a surge in investor interest in Ethereum ETFs. Recently, these funds have experienced record trading volumes and strong net inflows.
For example, on February 4, 2025, Ethereum ETFs recorded net inflows of $307.77 million — the largest one-day inflow of the year — highlighting robust investor confidence. 
Total Ethereum Spot ETF Net Inflow via Coinglass
This performance not only supports the case for introducing options trading but also underscores market readiness for such financial innovations.
Introducing options on Ethereum ETFs could potentially help stabilize Ethereum’s price by increasing market liquidity.
Options provide advanced risk-management tools for institutional investors, enabling them to hedge against price swings.
Retail traders could also use these options for speculative strategies. Over time, wider use of options could foster a more mature and resilient market for Ethereum, encouraging greater institutional adoption and aiding the cryptocurrency’s integration into mainstream finance.
Industry figures, such as Nate Geraci of The ETF Store, have suggested the approval timeline could mirror that of spot bitcoin ETFs, which took roughly 8–9 months from launch to approval for options trading.
If a similar timeline holds, options on Ethereum ETFs could materialize in the near future, potentially within the coming months, assuming regulatory concerns are addressed.