CBOE

These 5 spot Ethereum ETFs are set to launch July 23: CBOE

Published

5 months ago

July 21, 2024

The Chicago Board Options Exchange (CBOE) has confirmed the launch of spot Ethereum exchange-traded funds (ETFs) next week.

The cryptocurrency market is set to witness a major milestone as spot Ethereum ETFs are slated to begin trading on the CBOE next week.

CBOE revealed the information in the latest “new listings” notice on its website, confirming the launch of five Ethereum (ETH) ETFs. These include:

21Shares Core Ethereum ETF (CETF)
Fidelity Ethereum Fund (FETH)
Franklin Ethereum ETF (EZET)
Invesco Galaxy Ethereum ETF (QETH)
VanEck Ethereum ETF (ETHV)

According to the notification, trading for these highly anticipated ETFs will commence on July 23, pending regulatory approval.

The proposed ETFs will track ETH, the native token of the Ethereum blockchain, which is the second-largest cryptocurrency with a market capitalization of $420.8 billion, trailing only Bitcoin’s $1.1 trillion market value.

The price of ETH hasn’t reacted much to the news just yet, having only gone up by a modest 0.8% in the last 24 hours. Trading volumes were also down 15.5%, with about $13.3 billion worth of ETH changing hands since yesterday.

5 spot Ethereum ETFs set to launch July 23, but only if 'no last-minute issues' occur - 1 — Ethereum 24-hour price chart | Source: CoinGecko

This development follows months of speculation and revised predictions from industry analysts.

More recently, the anticipation for the launch of spot Ethereum ETFs has been evident on social media. For instance, on July 14, Nate Geraci, a prominent voice in the ETF space, expressed confidence in the imminent approval, citing no apparent reasons for further delays and noting that issuers were prepared for the launch.

Welcome to spot eth ETF approval week…
I’m calling it.
Don’t know anything specific, just can’t come up w/ good reason for any further delay at this point.
Issuers ready for launch.
— Nate Geraci (@NateGeraci) July 14, 2024

Following this, on July 15, Bloomberg’s Senior ETF analyst Eric Balchunas reinforced Geraci’s prediction, informing his followers that the SEC had contacted issuers to finalize documentation and request effectiveness for a launch on Tuesday, July 23, assuming “no unforeseeable last-minute issues” arose.

Update: Nate’s instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024

Earlier forecasts by Balchunas had suggested that the ETFs might begin trading as early as July 2. However, he later adjusted his prediction to July 18, which closely aligns with the new official launch date.

Two months ago, the Securities and Exchange Commission (SEC) seemed to have applied the brakes on the approval of Ethereum ETFs, using the same arguments it had made when delaying giving the nod for spot Bitcoin ETFs. The regulator claimed that there were concerns over potential fraud and investor protection regarding the spot Ethereum ETFs.

However, the confirmation from the CBOE signals a promising step forward for the crypto market. Their performance and demand will be closely monitored, as their success could pave the way for additional crypto ETF filings in the future.

This approval coincides with the markedly improved performance of spot Bitcoin ETFs, which have seen a significant net inflow of $17 billion, highlighting the increasing mainstream acceptance of crypto investments.

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Bitcoin ETF

NYSE, CBOE to list Bitcoin ETF options after SEC approval

Published

2 months ago

October 20, 2024

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The U.S. Securities and Exchange Commission has granted “accelerated approval” for listing Bitcoin options exchange-traded funds on the New York Stock Exchange and the Chicago Board Options Exchange.

According to Oct. 18 filings, the SEC has greenlighted the NYSE and CBOE to list and trade options for Bitcoin ETFs.

Options give investors the right to buy or sell an asset—referred to as “call” or “put” options—at a specific price before an agreed date. This move is expected to open up new opportunities for investors seeking to manage risk or capitalize on Bitcoin price fluctuations.

In its NYSE approval, the regulator wrote options trading could result in “better price efficiency” and “less volatility” for the underlying Bitcoin ETFs, potentially stabilizing the broader market.

“Permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products,” the filing added.

For NYSE, options trading will be available for 11 ETF providers which include:

Fidelity Wise Origin Bitcoin Fund
ARK21Shares Bitcoin ETF
Invesco Galaxy Bitcoin ETF
Franklin Bitcoin ETF
VanEck Bitcoin Trust
WisdomTree’s Bitcoin Fund
Grayscale Bitcoin Trust
Grayscale Bitcoin Mini Trust
Bitwise Bitcoin ETF
BlackRock’s iShares Bitcoin Trust ETF
Valkyrie Bitcoin Fund

Meanwhile, the SEC also approved options listings for these funds on the CBOE with the only exception being Grayscale’s Bitcoin Mini Trust.

Earlier in 2024, the SEC had already approved Nasdaq’s application to list and trade options for BlackRock’s iShares Bitcoin Trust.

Investors see the approval of options for Bitcoin ETFs as a key development that could bring additional liquidity to Bitcoin markets. Jeff Park, Bitwise Invest’s head of alpha strategies, called this development a “game-changing” for cryptocurrency markets.

Other market observers noted that Wall Street’s involvement could significantly boost Bitcoin markets once trading begins. See below.

Meanwhile, the SEC delayed the approval of options trading for spot Ethereum ETFs, initially expected by the end of September, and has extended the review period to mid-November.

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Bitcoin ETF

NYSE, Cboe Win SEC Approval for Bitcoin (BTC) ETF Options

Published

2 months ago

October 20, 2024

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In its NYSE approval, the SEC wrote that it believes options on the bitcoin ETFs “would permit hedging, and allow for more liquidity, better price efficiency, and less volatility with respect to the underlying Funds,” as well as “enhance the transparency and efficiency of markets in these and correlated products.”

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