2025-06513NoticeWallet

Another Exchange Unlocks Ethereum ETF Options Trading Immediately

Published Date: 4/17/2025

Notice

Summary

Cboe BZX Exchange is now letting traders buy and sell options on three popular Ethereum ETFs: Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Bitwise Ethereum ETF. This change means more ways to invest in Ethereum through options, starting right away. Investors and traders can jump in to explore new opportunities with these crypto-related ETFs on April 10, 2025.

Analyzed Economic Effects

5 provisions identified: 4 benefits, 1 costs, 0 mixed.

Options Listed on Three Ethereum ETFs

Cboe BZX will list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The Exchange filed the rule change on April 10, 2025 and trading of these options may commence upon the Exchange's listing procedures.

Physical Settlement; American-Style Exercise

Options on each Ethereum Fund will be physically settled contracts with American-style exercise, meaning option holders may exercise prior to expiration and resulting settlements involve delivery/receipt of shares. This settlement style applies to these Ethereum Fund options as stated in the filing.

25,000-Contract Position and Exercise Limit

The Exchange will set position and exercise limits for options on the Ethereum Funds at 25,000 same-side option contracts. The filing explains this 25,000-contract limit and compares it to higher limits available for other ETFs.

Strike Intervals and Minimum Increments Specified

Strike price intervals will be $1 or greater when strike is $200 or less and $5 or greater when strike is over $200; the Exchange may also list series under $1, $0.50, $2.50, or $5 strike programs. Minimum quoting/increment rules: where option price is under $3.00 the minimum increment will be $0.05 and where $3.00 or higher the minimum increment will be $0.10 (with penny-interval program exceptions noted).

Allowed Expirations and LEAPS Availability

The Exchange will open at least one expiration month at commencement of trading and may list weekly, monthly, quarterly expirations and long-term equity options (LEAPS) that expire from 12 to 39 months for these Ethereum Fund options.

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Key Dates

Effective Date
Published Date
4/10/2025
4/17/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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