The Cboe BZX Exchange, Inc. has submitted a proposal to the Securities and Exchange Commission (SEC) to allow trading options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The proposal aims to modify existing rules to enable these options, offering investors the opportunity to explore Ethereum's price movements in a more regulated setting. These Ethereum-based ETFs will operate similarly to other commodity ETFs already trading on the exchange, like those based on Bitcoin. The SEC is seeking public comments on this proposal, particularly regarding its consistency with securities laws.
Simple Explanation
The Cboe BZX Exchange wants to let people buy and sell special bets, called options, on three funds that follow the price of Ethereum, which is a kind of digital money. The government agency in charge of making sure everything's fair, called the SEC, is asking people what they think about this idea.