More Options Trading Proposed for Ethereum ETFs on EDGX
Published Date: 2/26/2025
Notice
Summary
Cboe EDGX Exchange is getting ready to let traders buy and sell options on three new Ethereum-related ETFs: the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. This change opens up fresh ways for investors to bet on or protect their crypto investments starting soon, with no direct cost changes announced yet. If you’re into trading or crypto, keep an eye out for when these options hit the market!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Options Allowed on Three Ethereum ETFs
Cboe EDGX proposes to list and trade options on three named Ethereum exchange-traded funds: the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The filing was submitted February 5, 2025 and amended February 6, 2025, and the SEC published notice on February 20, 2025.
25,000-Contract Position Limit Set
The Exchange proposes position and exercise limits of 25,000 same-side option contracts for options on each Ethereum Fund (which equates to up to 2,500,000 underlying shares if all contracts were exercised).
Available Expirations and LEAPS Up To 39 Months
The Exchange will open at least one expiration month at commencement of trading and may list weekly, monthly, quarterly series and long-term equity option series (LEAPS) that expire from 12 to 39 months from listing for options on the Ethereum Funds.
Options Will Be Physically Settled
Options on each Ethereum Fund will be physically settled and use American-style exercise, meaning exercised options result in delivery of the ETF shares and may be exercised any time before expiration. This treatment is stated in the proposal.
Strike Intervals and Minimum Increments
Strike price intervals will be $1 or greater when strikes are $200 or less and $5 or greater when strikes are over $200; the Exchange may also use $1, $0.50, $2.50, and $5 strike programs. Minimum quoting/trade increments will be $0.05 for series priced below $3.00 and $0.10 for series priced at $3.00 or higher, with penny-interval program exceptions noted in the rules.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in