2025-06762NoticeWallet

Bitcoin Gets Fancy: Options Trading on VanEck Trust Proposed

Published Date: 4/21/2025

Notice

Summary

MIAX Sapphire wants to let people trade options on the VanEck Bitcoin Trust by updating their rules. This change affects investors who like trading crypto-related options and could bring new money and opportunities to the market soon. The SEC is now asking for public feedback before giving the green light.

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Analyzed Economic Effects

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

Proposed listed options on VanEck Bitcoin Trust

MIAX Sapphire filed on April 1, 2025 to permit listing and trading of options on the VanEck Bitcoin Trust if the SEC approves the proposal. The Exchange says the Trust meets its listing criteria (e.g., 49,900,000 shares outstanding as of March 5, 2025) and intends to open series for trading in the same manner as other ETF options.

Listed options offer exchange protections vs OTC

The Exchange says listing Trust options on an exchange would move some trading out of the unregulated over-the-counter (OTC) market and onto a listed market, giving investors benefits like increased transparency, more efficient order entry/exit, and the Options Clearing Corporation (OCC) acting as issuer and guarantor. MIAX expects some OTC liquidity to migrate to listed trading on the Exchange.

Proposed 25,000-contract position limits

The Exchange proposes position and exercise limits for options on the Trust of 25,000 contracts on the same side, which it notes is the lowest limit applicable to any equity or ETF options. The Exchange says this limit is conservative given the Trust's trading volume and outstanding shares.

Trading mechanics: settlement, expirations, and increments

The Exchange states options on the Trust would be American-style, physically settled contracts and may be listed with weekly, monthly, quarterly expirations or LEAPS that expire 12 to 39 months after listing. Strike interval and minimum increment rules apply (examples: short-term strike intervals of $0.50 for strikes below $100, and minimum increments of $0.05 when option price is below $3.00 and $0.10 when $3.00 or higher).

Surveillance and market safeguards apply to Trust options

MIAX states it will apply existing surveillance programs to options on the Trust, will share surveillance information with affiliate exchanges and Intermarket Surveillance Group members (including CME and Cboe), and has a Regulatory Services Agreement with FINRA for certain surveillance functions. The Exchange says these measures are intended to deter and detect market manipulation.

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Key Dates

Published Date
4/21/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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