NYSE American filing aims to bring options trading to the Grayscale crypto ETF CoinDesk Crypto 5

Demand for derivatives on digital asset funds continues to grow, and the Grayscale crypto ETF CoinDesk Crypto 5 is now at the center of the latest push for options access.

Grayscale CoinDesk Crypto 5 ETF targets options listing

Crypto asset manager Grayscale Investments is moving to introduce options trading on its CoinDesk Crypto 5 ETF (GDLC). NYSE American has submitted a filing to the U.S. SEC seeking approval to list and trade options on the fund, mirroring structures used in other exchange-traded products.

The Grayscale ETF tracks a basket of Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This effort comes amid rising institutional and retail interest in options tied to crypto exchange-traded funds, as traders search for additional hedging and leverage tools.

According to the latest SEC notice, NYSE American has proposed amendments to specific rules to allow listing and trading of physically settled, American-style options on GDLC shares. Moreover, the proposal outlines how these options would function within the existing framework that already governs other commodity-based products.

How the GDLC options structure would work

The planned options on GDLC are designed to operate similarly to contracts on commodity-based trusts such as SPDR Gold Trust and iShares Silver Trust. That said, the filing emphasizes that underlying assets including Bitcoin, Ethereum, and XRP are classified as commodities by U.S. regulators, which supports this regulatory approach.

The document details positions and exercise limits, along with risk controls and guidelines comparable to those applied to single-crypto ETPs like the iShares Bitcoin Trust (IBIT). However, it also stresses the need to tailor these requirements to a multi-asset structure that bundles several leading digital currencies.

NYSE American argues that its existing surveillance procedures are adequate to oversee trading in GDLC options. In addition, the exchange contends that listing these contracts would enhance competition for order flow and improve pricing for investors by adding another venue and product set.

If approved, NYSE American would initially list at least one expiration month in the GDLC options. Over time, it could list weekly, monthly, quarterly, or long-term LEAPS series, aligning the product with the maturity profiles seen in established equity and commodity options markets.

Grayscale crypto ETF composition and current allocations

The Grayscale CoinDesk Crypto 5 ETF offers diversified exposure by tracking a basket of BTC, ETH, XRP, SOL, and ADA. It is structured to give investors broad access to major digital assets through a single, regulated investment vehicle, reducing the need to manage individual spot holdings.

GDLC received approval from the SEC as a spot ETF under the Generic Listing standards in September. At the time of writing, the fund’s allocations stand at 75.20% in BTC, 15.69% in ETH, and 5.41% in XRP. Moreover, Solana represents 3.09% of the portfolio, while Cardano accounts for 0.61% of the GDLC fund holdings.

These allocations highlight GDLC’s concentration in Bitcoin and Ethereum while still maintaining exposure to other large-cap altcoins. However, the basket approach aims to smooth idiosyncratic volatility in any single token by diversifying across several of the most actively traded names.

Grayscale’s plan to enable options trading on the grayscale crypto etf is intended to give investors more flexibility and risk management capabilities. Options contracts could be used to hedge downside risk, implement income strategies, or take directional views on the performance of the underlying digital asset basket.

Regulatory context and market significance

If the SEC approves the NYSE American proposal, GDLC would become one of the first multi-asset crypto ETFs in the U.S. to support listed options. That said, such a move would deepen the integration of digital assets into mainstream financial markets and could set a template for future multi-token products.

The SEC has already allowed options trading on spot Bitcoin ETFs, including the BlackRock Bitcoin ETF (IBIT). Consequently, approval for GDLC options would be a logical extension of the regulatory trajectory that began with single-asset crypto funds and is now slowly expanding to more complex structures.

Market participants have increasingly called for standardized derivatives on diversified crypto baskets. However, regulators continue to monitor market integrity, liquidity, and investor protection, which makes each new options launch a notable test case for the broader ecosystem.

Bitcoin, ETH and XRP under pressure

While the GDLC options filing moves through the regulatory process, price action across major cryptocurrencies remains volatile. Bitcoin price dropped below $90,000 amid selling pressure in the broader crypto market, driven in part by nervousness around U.S. jobs data and looming crypto options expiries.

BTC was trading at $89,970 at the time of writing, with a 24-hour low of $89,578 and a high of $92,189. Analyst Ted Pillows remained upbeat despite the pullback, stating: “I still think Bitcoin will hit $98,000-$100,000 before any major downtrend.”

ETH also came under pressure, sliding toward the key $3,000 area. The intraday low and high were $3,052 and $3,190, respectively. Moreover, Ethereum has lost a crucial support level, with the next important zone identified between $3,020-$3,050. If that range holds, analysts expect renewed upside momentum.

XRP retreated to a 24-hour low of $2.07 as spot XRP ETFs recorded their first-ever outflow, totaling $40.80 million. That said, traders are watching whether continued fund redemptions will translate into deeper price weakness or if bargain hunters will step in.

Outlook for GDLC options and crypto markets

The outcome of the NYSE American application will be closely watched by both institutional and retail investors seeking more sophisticated tools tied to crypto ETFs. If GDLC options gain approval, they could accelerate the maturation of the digital asset derivatives market and attract additional liquidity into regulated venues.

In summary, the push to list options on GDLC underscores how quickly crypto-linked financial products are evolving. However, it also highlights the ongoing balance regulators must strike between innovation, investor access, and market safeguards as digital assets move further into the financial mainstream.