SEC Greenlights Ethereum Options: Crypto Goes Legit on Wall Street?
Published Date: 4/17/2025
Notice
Summary
Miami International Securities Exchange (MIAX) is updating its rules to let traders buy and sell options on the iShares Ethereum Trust, a popular crypto-related fund. This change affects investors interested in Ethereum options and kicks in right away, opening new ways to trade and manage risk. It’s a fresh move that could shake up how people invest in crypto through traditional markets.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
MIAX Will List Ethereum ETF Options
MIAX filed on April 10, 2025 to amend Exchange Rules 402, 307, and 309 to allow the Exchange to list and trade options on the iShares Ethereum Trust. If you trade options or invest in crypto ETFs, this creates a new way to trade and hedge exposure to spot Ether on MIAX under the Exchange's existing ETF-options rules.
25,000-Contract Position and Exercise Limits
The Exchange proposes to set position and exercise limits for options on the iShares Ethereum Trust at 25,000 contracts on the same side pursuant to proposed Interpretations and Policies .01 to Exchange Rules 307 and 309. The filing states these limits are conservative and are the lowest position/exercise limits available in the options industry for this product.
Options Use Standard ETF Rules
Options on the iShares Ethereum Trust will trade like other ETF options on MIAX: they will be physically settled, American-style, and the Exchange may list weekly, monthly, quarterly expirations or LEAPS (12–39 months). Strike intervals, minimum increments (e.g., $0.05 under $3.00; $0.10 at $3.00 or higher), and other listing mechanics will follow existing Exchange Rules 404 and 510.
Trust Holds Ether; No Staking or Yield
The iShares Ethereum Trust's assets will consist only of Ether and cash held by custodians (Coinbase Custody for Ether; Bank of New York Mellon for cash), and the Trust will not engage in actions that subject any Trust Ether to Ethereum proof-of-stake validation or use Trust Ether to earn additional Ether or generate income. The Trust stores private keys in cold storage.
Margin and Surveillance Rules Apply
Trading of options on the Trust will be subject to MIAX margin requirements (Exchange Rule 1502) and the Exchange's existing surveillance and reporting safeguards, including access to Intermarket Surveillance Group (ISG) data and FINRA surveillance under a 17d-2 plan. The Exchange stated it has systems capacity to support the additional option series.
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