2026-00293Notice

Options Trading Hits Grayscale's Crypto ETF: Bet Big?

Published Date: 1/12/2026

Notice

Summary

NYSE American wants to let people trade options on the Grayscale CoinDesk Crypto 5 ETF, a new crypto-focused fund. This change means investors can now use options to bet on or protect their crypto ETF shares starting soon. It’s a fresh way to play in the crypto market with more tools and flexibility, potentially shaking up how folks invest in digital assets.

Analyzed Economic Effects

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

Options Now Proposed on GDLC ETF

The Exchange proposes to list and trade options on the Grayscale CoinDesk Crypto 5 ETF (GDLC). GDLC had approximately $479.7 million in assets under management as of November 21, 2025, and options would be American-style, physically settled and may trade weekly, monthly, quarterly, or as LEAPS.

25,000-Contract Position Limit Set

The Exchange proposes a position and exercise limit of 25,000 contracts on the same side for options on GDLC. The Exchange states this is equivalent to 2,500,000 underlying shares out of 12,007,400 outstanding shares (about 20.82%).

Listed Options Offer Exchange Benefits Over OTC

The Exchange states that listing GDLC options could move activity from the OTC options market to a listed environment, offering benefits such as more efficient order execution, increased market transparency, and OCC counterparty guarantees.

GDLC Options Excluded from FLEX Trading

The Exchange proposes that options on GDLC would not be eligible to trade as FLEX options under Rule 903G(a)(1); the Exchange may submit a separate filing later to permit FLEX trading if appropriate.

Contract Specs: Strikes and Minimum Increments

Strike price intervals for GDLC options will be $1 when the strike is $200 or less and $5 where the strike is over $200. Where the option price is less than $3.00 the minimum increment will be $0.05, and where $3.00 or higher the minimum increment will be $0.10; the Exchange may also list series under $1, $0.50, $2.50, and $5 strike programs as applicable.

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Key Dates

Published Date
1/12/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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