Grayscale, Bitwise, and NYSE American have submitted a proposal to the U.S. Securities and Exchange Commission (SEC) seeking approval to offer options on spot Ethereum ETFs. The proposal includes options for the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust, aiming to provide investors with more cost-effective investment and hedging tools. The SEC has previously approved several spot Ethereum ETFs, with significant trading volumes reported. Public comments on the new proposal are due in 21 days.

Grayscale and Bitwise are asking regulators to approve options for their spot Ethereum ETH 
 -2.25%
 exchange-traded funds, according to a filing on the U.S. Securities and Exchange Commission's site.In a filing posted on Wednesday, NYSE American LLC, along with Grayscale and Bitwise, proposed a rule change to list and trade options on three products — the Bitwise Ethereum ETF, the Grayscale Ethereum Trust and the Grayscale Ethereum Mini Trust as well as "any trust that holds ether.""The Exchange believes that offering options on Ether ETPs, including the Bitwise Ethereum ETF, the Grayscale Ethereum Trust (ETH), and the Grayscale Ethereum Trust Mini, will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions," according to the filing.Comments on the proposal are due in 21 days.The SEC approved several spot Ethereum ETFs, including from financial heavyweights BlackRock and Fidelity, in May. Those began trading last month and in its first day of trading on U.S. exchanges, the products generated more than $1.019 billion in cumulative trading volume, according to Yahoo Finance data compiled by The Block Pro Research.Multiple firms are also looking to trade options on spot bitcoin ETFs but have not yet gotten approval from the SEC. The agency approved 11 spot bitcoin ETFs in January.

Grayscale, Bitwise, and NYSE American Seek SEC Approval for Options on Spot Ethereum ETFs