2025-06507NoticeWallet

Cboe BZX Lets Traders Option iShares Ethereum Trust Now

Published Date: 4/17/2025

Notice

Summary

Cboe BZX Exchange just updated its rules to let people trade options on the iShares Ethereum Trust, a popular crypto-related fund. This change means investors can now bet on or protect their Ethereum Trust shares starting right away. If you’re into trading or crypto, this opens up fresh ways to play the market with options tied to Ethereum’s value.

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Options Now Allowed on iShares Ethereum Trust

Cboe BZX filed to allow listing and trading of options on the iShares Ethereum Trust on April 9, 2025, with the Commission notice dated April 11, 2025 and Federal Register publication on April 17, 2025. If you have investments, you can now trade listed options tied to the Trust on the Cboe BZX Exchange under the Exchange's standard ETF options rules.

Position and Exercise Limits Set at 25,000

The Exchange will apply position and exercise limits of 25,000 same-side option contracts for options on the iShares Ethereum Trust. These limits are stated in the filing and are the limits that will govern how many contracts a single account may hold or exercise.

Settlement, Expirations, and Strike Details

Options on the Trust will be physically settled American-style and the Exchange may list weekly, monthly, quarterly, and long-term equity option series (LEAPS) that expire from 12 to 39 months. Strike price intervals and minimum increments follow Exchange Rules (e.g., $1 intervals at or below $200, $5 intervals above $200; increments of $0.05 under $3 and $0.10 at or above $3).

Trust Backing and Custody Details Disclosed

The filing states the Trust's assets will consist only of ether (ETH) and cash, with ether held in a Coinbase Custody account in cold storage and cash held by The Bank of New York Mellon; the Trust will not engage in Ethereum proof-of-stake validation or use ETH to earn additional ETH. The Trust is organized as a Delaware statutory trust and is not registered under the Investment Company Act of 1940.

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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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