The NYSE American LLC has filed a proposed rule with the Securities and Exchange Commission to list and trade options on the iShares Ethereum Trust ETF and the Fidelity Ethereum Fund. These funds, referred to as Ether Funds, aim to reflect the performance of ether, providing investors with a way to engage in the ether market without handling the cryptocurrency directly. The proposed rule change suggests setting position and exercise limits at 25,000 contracts for these options, similar to limits for bitcoin-related options, to help prevent market manipulation. The proposed rule has already been approved for similar listings by other exchanges like Nasdaq ISE and Cboe.
Simple Explanation
The NYSE American stock exchange wants to start offering special contracts, called options, that let people invest in the price changes of a cryptocurrency called ether without actually buying any ether. They're setting rules to make sure people don't buy too many of these contracts at once, just like rules they have for bitcoin options, to keep things fair and safe.