NYSE American Proposes Listing Options on Grayscale Crypto ETF

NYSE American LLC ("NYSE") proposed amending its rules to permit the listing and trading of options on the Grayscale CoinDesk Crypto 5 ETF ("GDLC").

In its proposed rulemaking, NYSE explained that the amendment would allow options trading on GDLC, a diversified crypto investment fund that holds Bitcoin, Ether, XRP, Solana, and Cardano. The Exchange stated that offering these options would provide investors with a "lower-cost risk management tool" to manage positions associated with digital asset exposure in a transparent, listed market environment rather than the over-the-counter market.

The Exchange asserted that the proposal is consistent with current listing standards because: (i) GDLC satisfies the criteria for "Exchange-Traded Fund Shares," including having a substantial number of outstanding shares that are widely held and actively traded; (ii) the fund is structured similarly to precious metal commodity-based ETPs that are already deemed appropriate for options trading; (iii) the proposed position and exercise limits are set at 25,000 contracts—the lowest limit available—to conservatively balance liquidity against the prevention of manipulation; and (iv) existing surveillance procedures and reporting safeguards are adequate to deter and detect manipulative behavior.

Comments on the proposal must be submitted on or before February 2, 2026.