Cboe Seeks SEC Nod for Ethereum ETF Options Amid Institutional Surge

Cboe Seeks SEC Approval for Ethereum ETF Options Amid Rising Demand

The Chicago Board Options Exchange (Cboe) has submitted an application to the U.S. Securities and Exchange Commission (SEC) for the approval of Ethereum ETF options, according to a recent filing. This move comes amidst a surge in institutional demand for Ethereum and its related products.

The proposed Ethereum ETF options would be based on the Cboe Bitcoin ETF Trust, which has been trading under the ticker XBTF since March 2021. The new Ethereum ETF options would be listed on the Cboe BZX Exchange and would be subject to the same regulatory oversight as other exchange-traded funds (ETFs).

The surge in institutional demand for Ethereum is driven by several factors, including the network's growing transaction volumes and active addresses. According to data from IntoTheBlock, the number of transactions on Ethereum, Arbitrum, Optimism, and Base has increased by over 300% in recent months. Additionally, the number of active addresses on Coinbase has surged from 500,000 to over 2 million since July 2024, indicating robust user engagement within the Ethereum ecosystem.

From an on-chain perspective, Ethereum's most critical support level is between $2,238 and $2,614, where 12.18 million wallets hold 63.07 million ETH. This price range represents a strong concentration of on-chain holdings, amounting to roughly 5.33% of all Ethereum that exists. A dip into this range would likely be met with a wave of buying, providing a solid buffer against further declines for Ethereum's price.

Ethereum's institutional demand has been building consistent momentum, with Ethereum spot ETFs recording a net inflow of $308 million on February 4, marking the fourth consecutive day of positive inflows. This sustained interest in Ethereum ETFs indicates that large financial players are increasingly valuing ETH as a valuable asset, similar to the institutional adoption narrative seen with Bitcoin over the last couple of years.

The network of Ethereum is expanding like never before, with the number of transactions occurring on Ethereum and its Layer 2 networks reaching unprecedented levels. As demand from institutions continues