NYSE American LLC has taken a notable step Proposed rule changes Submitted to the U.S. Securities and Exchange Commission (SEC). The rule change is intended to allow the listing and trading of options on three Ethereum ETFs managed by Grayscale and Bitwise.
On August 7, the New York Stock Exchange SEC Approved trading options for ETHE, ETHW, and the Grayscale Ethereum Mini (ETH) ETF.
NYSE and NASDAQ ETF Options
According to the New York Stock Exchange American Division, offering options trading for these Ethereum ETFs will provide investors with a cost-effective way to invest Increase exposure to Ether.
In addition, the change will introduce a valuable hedging mechanism that will allow investors to more effectively manage their positions in ether-related products. The exchange noted that the proposed options trading will greatly benefit investors by providing them with economic tools to manage investment risk.
The proposal is now open for public comment for 21 days Stakeholders Submit Feedback.
The proposal only concerns the Grayscale and Bitwise Ether Funds, which are the only spot Ether funds currently listed on the NYSE American exchange.
At the same time, the move highlights the growing integration of crypto investments into traditional financial markets. Require Nasdaq proposed seeking approval from the U.S. Securities and Exchange Commission on August 6 ETHA ETF Options Trading.
Notably, the exchanges’ proposals reflect the growing demand for ether-based financial instruments. However, each request is for funds listed on its platform.
Despite the enthusiasm, exchanges may face delays in getting approval because the SEC has yet to approve options trading on the spot bitcoin ETF, even though the ETF has accumulated about $50 billion in assets since its launch in January.
In addition, on July 25, the U.S. Securities and Exchange Commission Informed Nasdaq is among several options exchanges that have said they need more time to complete their requests to list options on spot bitcoin ETFs.
Investment protection options
Options are used by hedge funds and financial planners Protection against sudden changes in market prices. For example, when the price of Ethereum fell 28% on August 5, options could have reduced the impact of that loss.
In addition to protection, options also allow for more advanced strategies such as the “covered stranglehold.” This strategy is a specific technique that 10x Research I believe you can Potentially increase profits or limit risk.
Financial advisors play an important role in management Investing in the $9 Trillion ETF Markethandling nearly half of the inflows.
according to Polls According to the Journal of Financial Planning, more than 10% of advisors use options to help manage their clients’ investments. This means they use options to make adjustments to protect or grow their clients’ money.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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