The U.S. Securities and Exchange Commission has opened formal proceedings to determine whether to approve or disapprove a proposal to list and trade options on the Grayscale CoinDesk Crypto 5 ETF, signaling continued caution toward crypto-linked derivatives.

The move does not represent a decision on the proposal. Instead, it marks the next stage of the review process, in which the regulator seeks additional analysis and public comment before reaching a final outcome.

Proposal targets multi-asset crypto ETF options

The application, filed by NYSE American, seeks approval to list options on the Grayscale CoinDesk Crypto 5 ETF [GDLC], a fund designed to track a basket of major digital assets.

According to the filing, the ETF is primarily…