Ethereum ETF Options Heat Up as BlackRock, NYSE, Grayscale, and Bitwise Seek SEC Approval

The race is on for Ethereum ETF options, which are becoming crucial for normalizing the market, especially in regulated exchanges.

Several major companies, including BlackRock, the New York Stock Exchange (NYSE), Grayscale, and Bitwise, have filed applications with the Securities and Exchange Commission (SEC) to offer Ethereum exchange-traded fund (ETF) options.

The applications were filed on Monday, March 13th, and follow BlackRock's initial request for approval earlier this week.

The SEC will now review the applications and, if approved, will open a 21-day comment period before making a final decision.

This move is significant as it could lead to increased mainstream adoption of Ethereum and wider use of ETH ETFs.

Institutions are pushing for Ethereum ETF options

Several large ETF managers are now applying to the SEC for approval to offer Ethereum ETF options, a move that could further institutionalize the cryptocurrency market.

BlackRock, Bitwise, and Grayscale have all filed applications with the SEC for approval to offer these options, which are already available in U.S. markets.

Institutions typically prefer these options because they can be used cheaply to hedge their investments in traditional spot ETFs, a strategy that is not easily available with futures contracts.

While some institutions may prefer to trade options on offshore exchanges, that option is not available for ETFs that trade on regulated U.S. exchanges.

Several institutions are also likely to prefer options over futures, which are already available on the Chicago Mercantile Exchange (CME) in Chicago.

The arrival of ETF options on regulated markets is part of a broader trend towards normalizing and institutionalizing the cryptocurrency market.

Major players are attempting to capture a share of this valuable and lucrative market, which is expected to grow significantly in the coming years.

The SEC, under the leadership of Gary Gensler, is likely to take its time in making a decision on these applications, as is typical for crypto matters.

However, approval appears to be almost certain, as there are no clear grounds for denying the applications.

The SEC's response is expected to come at the last possible moment, as has been the case for several other crypto-related matters.

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