Cboe Shrinks Bitcoin ETF Option Steps for Slicker Trades
Published Date: 4/3/2026
Notice
Summary
Cboe Exchange is changing the smallest price step for options on its Mini Bitcoin ETF Index to make trading smoother and clearer. This change affects traders using these options and kicks in quickly after approval, with no extra costs involved. The SEC gave this update a fast green light, so expect the new rules to start soon!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
MBTX options tick-size lowered
If you trade options on the Cboe Mini Bitcoin U.S. ETF Index (MBTX), the Exchange allows minimum trading increments of $0.01 for series priced below $3.00 and $0.05 for series priced at $3.00 or higher. The rule change was approved on an accelerated basis and will take effect while IBIT options participate in the Penny Interval Program.
Finer ticks may narrow spreads
The Exchange expects the $0.01 and $0.05 increments to allow more granular pricing, which may narrow bid-ask spreads, increase available price points, and boost liquidity—especially for short-dated MBTX option series. The filing states this finer pricing lets investors hedge and price options more precisely.
Increments conditional on IBIT Penny Program
The permitted $0.01 (below $3.00) and $0.05 (at/above $3.00) increments for MBTX options apply only while iShares Bitcoin Trust ETF (IBIT) options participate in the Penny Interval Program. If IBIT options cease participation in that program, the MBTX increments are conditioned accordingly.
Levels playing field with IBIT and futures
Allowing penny and nickel increments is intended to let MBTX options better compete with IBIT, BITO, and FBTC options and with Micro Bitcoin futures; the Exchange notes IBIT option volume was nearly 25 times the next-most-active component and reports a correlation of approximately 0.9999 between MBTX and IBIT. The rule is intended to align MBTX pricing granularity with those competitor products.
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