Ethereum Options Hit MEMX: Crypto Bets Go Legit
Published Date: 5/15/2025
Notice
Summary
MEMX is now letting traders buy and sell options on the iShares Ethereum Trust, a popular crypto fund. This change means investors can use new strategies with Ethereum without owning the crypto directly. The update took effect right away on May 5, 2025, opening fresh opportunities in the market.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Listed Options Now Available on iShares Ethereum Trust
The MEMX exchange is allowed to list and trade options on the iShares Ethereum Trust, effective May 5, 2025. You can now trade listed options tied to this ETF to get exposure to ether without owning ETH directly.
Position and Exercise Limits Set at 25,000
MEMX proposes that position and exercise limits for options on the iShares Ethereum Trust be set at 25,000 contracts on the same side. These limits are lower than many standard industry limits and are described as conservative.
Listed Trading Brings Transparency, OPRA Quotes, OCC Backing
Quotes and last-sale data for the Trust will be available via the CTA (for the ETF) and OPRA (for options); listed options will be issued and guaranteed by the Options Clearing Corporation (OCC). MEMX expects some OTC options activity to migrate to the listed market, improving transparency and counterparty creditworthiness.
Contract Terms: Settlement, Expiries, Strike Rules
Options on the Trust will be physically settled American-style contracts and may be listed with weekly, monthly, quarterly expirations, and LEAPS that expire 12 to 39 months after listing. Strike price intervals will be $1 (when strike is $200 or less) or $5 (when strike is over $200), and minimum quote increments are $0.05 for option prices below $3.00 and $0.10 for $3.00 or higher (with special penny-increment rules available under the Penny Interval Program).
Customer Disclosures and Broker Suitability Required
Before trading Trust options customers must receive appropriate disclosures and brokers recommending or opening accounts must comply with customer suitability standards under MEMX rules. These requirements apply to trading options in the Trust.
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