MEMX Unlocks Options Trading on Ethereum ETFs Galore
Published Date: 6/17/2025
Notice
Summary
MEMX is now letting folks trade options on four popular Ethereum ETFs, including the Fidelity and Grayscale funds. This change means investors can get more creative with their Ethereum bets starting right away. If you trade options or ETFs, this opens up fresh ways to play the crypto market with familiar tools.
Analyzed Economic Effects
4 provisions identified: 2 benefits, 1 costs, 1 mixed.
MEMX will list options on four Ethereum ETFs
MEMX filed a rule change on May 29, 2025 to allow listing and trading of options on four Ethereum-based funds: the Fidelity Ethereum Fund (FETH), the Grayscale Ethereum Trust ETF (ETHE), the Grayscale Ethereum Mini Trust ETF (ETH), and the Bitwise Ethereum ETF (ETHW). This change enables investors with investments to trade options on these specific ETFs on MEMX.
25,000-contract position limit set
The Exchange will set position and exercise limits for options on each of the four Ethereum Funds at 25,000 contracts. A 25,000-contract position limit effectively caps receipt on exercise at 2,500,000 underlying shares (the filing shows this equals about 1.4% of ETHE, 5.5% of ETH, and 15.1% of ETHW based on November 29, 2024 data).
Options will be physically settled and American-style
Options on the Ethereum Funds will be physically settled contracts with American-style exercise. MEMX will open at least one expiration month at commencement of trading and may list weekly, monthly, quarterly series and long-term equity option series (LEAPS) that expire from 12 to 39 months.
Strike intervals and minimum increments defined
Strike price intervals for Ethereum Fund options will be $1 when strike ≤ $200 and $5 when strike > $200, with MEMX able to use $1, $0.50, $2.50, and $5 strike programs. Minimum quote increments will be $0.05 for option prices below $3.00 and $0.10 for prices $3.00 or higher, with penny-interval exceptions ($0.01/$0.05) if eligible.
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