Cboe EDGX Approves Options on iShares Ethereum Fund
Published Date: 4/17/2025
Notice
Summary
Cboe EDGX Exchange is updating 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 Ethereum’s price moves through options starting right away, opening new ways to invest and manage risk. Traders and crypto fans should watch for this fresh opportunity hitting the market immediately with no extra fees announced yet.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
Options Listed on iShares Ethereum Trust
Cboe EDGX filed on April 9, 2025 to allow the Exchange to list and trade options on the iShares Ethereum Trust. This means investors who have investment accounts can trade exchange-listed options tied to the Trust (which holds ether) on EDGX beginning under this immediately effective filing.
25,000 Contract Position and Exercise Limit
Position and exercise limits for options on the iShares Ethereum Trust are set at 25,000 same-side option contracts. The Exchange describes that these limits are intended to address manipulation risk relative to the Trust's market capitalization and average daily volume.
Trading Mechanics and Option Specs
Options on the Trust will be American-style and physically settled; the Exchange will open at least one monthly expiration at commencement and may list weekly, monthly, quarterly, or LEAPS (12–39 months). Strike intervals will be $1 (≤ $200) or $5 (> $200), and minimum increments will follow Rule 21.5 (for example $0.05 when price < $3.00 and $0.10 for ≥ $3.00 unless eligible for penny increments).
Listed-Options Protections and Surveillance
The Exchange will apply existing listing/trading rules, require customer disclosures and broker suitability, and rely on surveillance arrangements (ISG, FINRA 17d-2, and affiliated exchange surveillance) and OPRA/CTA data feeds. The filing also notes listed trading offers transparency and OCC clearing compared with OTC options.
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