Cboe Unleashes Custom Bitcoin ETF Options for Flexible Trading
Published Date: 8/20/2025
Notice
Summary
Cboe Exchange just made it easier and more flexible to trade options on popular Bitcoin funds like iShares Bitcoin Trust and Grayscale Bitcoin Trust. Starting now, investors can customize their trades with these FLEX options, giving them more control and new ways to invest. This change kicks in immediately and could open up fresh opportunities for anyone trading Bitcoin-related options.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
FLEX Options Now Allowed on Four Bitcoin Funds
If you trade options, Cboe now permits Flexible Exchange (FLEX) Equity Options on four Bitcoin exchange-traded funds/trusts: iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB). FLEX options let traders customize contract terms for exchange-listed equity options and are now available on these four Funds as of the Exchange filing (filed August 7, 2025).
25,000-Contract Aggregated Limit Remains
Cboe will aggregate any FLEX and non-FLEX option positions in the same Fund and apply a 25,000-contract position and exercise limit per Fund. If all options were exercised, that 25,000-contract cap corresponds to up to 2,500,000 shares in a Fund.
Exchange Trading Reduces OTC Counterparty Risk
The Exchange states that FLEX Fund Options traded on-exchange should mitigate counterparty credit risk compared with over-the-counter (OTC) contracts because the contracts are issued and guaranteed by The Options Clearing Corporation (OCC) and exchange trading provides greater price discovery and transparency.
Rule Change Operative Immediately Upon Filing
The Commission waived the normal 30-day operative delay and designated Cboe's proposed rule change as operative upon filing; the Exchange filed the proposed change on August 7, 2025, so FLEX trading on these Funds became effective upon that filing.
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