MIAX Sapphire, LLC has submitted a proposed rule change to the Securities and Exchange Commission (SEC) to allow options trading on the Fidelity Ethereum Fund. This proposal aims to amend Exchange Rule 402, so that this fund can be listed and traded similar to other exchange-traded funds (ETFs) that hold commodities. The change is designed to let investors hedge against price changes in Ethereum effectively through a regulated market, rather than engaging in unregulated over-the-counter options markets. The SEC is inviting public comments on the proposal.
Simple Explanation
MIAX Sapphire, LLC wants to make a change to allow people to trade options (like a buying-later ticket) on a special Ethereum fund, which helps investors manage price changes safely and legally through official markets, instead of risky places. The SEC is asking people what they think about this idea.