2025-06494NoticeWallet

NYSE American Unlocks Options Trading on Ethereum ETFs

Published Date: 4/17/2025

Notice

Summary

NYSE American is updating its rules to let traders buy and sell options on two new Ethereum-based funds: the iShares Ethereum Trust ETF and the Fidelity Ethereum Fund. This change affects investors interested in crypto-related products and kicks in right away with no extra fees. It’s a smart move to keep up with the growing demand for Ethereum options on the exchange.

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Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Exchange will list options on two Ether funds

NYSE American proposes to list and trade options on the iShares Ethereum Trust ETF (ETHA) and the Fidelity Ethereum Fund (FETH). The filing was submitted on April 9, 2025, and the Exchange says listing these options offers investors a listed-market alternative to trading similar OTC options and a cost-efficient way to gain exposure to the price of ether.

Position and exercise limits capped at 25,000

The Exchange proposes to set the position and exercise limits for options on ETHA and FETH at 25,000 contracts on the same side of the market. The filing states this is the lowest industry limit and is the same limit previously approved for bitcoin-backed ETP options.

Contract terms: physical, American-style and expirations

Options on the Ether Funds will be physically settled, American-style contracts. At least one expiration month will open at commencement of trading, and the Exchange may list weekly, monthly, quarterly series and long-term equity option series (LEAPS) that expire from 12 to 39 months.

Ether Fund options will not be eligible for FLEX

The Exchange proposes that options on ETHA and FETH will not be eligible for FLEX (flexible) option trading under current rules. The Exchange may later file to permit FLEX trading, but at present FLEX eligibility is excluded for these funds.

Strike intervals and minimum price increments set

The filing sets strike-price intervals and quoting increments: strike intervals will be $1 for strikes at $200 or less and $5 for strikes over $200; minimum quote increments will generally be $0.05 when option price is under $3.00 and $0.10 when $3.00 or higher, with possible participation in penny and other strike-interval programs as allowed by the rules.

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Key Dates

Effective Date
Published Date
4/9/2025
4/17/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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