Cboe Wants to Bet on Ethereum: Options Trading Gets Crypto Twist
Published Date: 2/13/2025
Notice
Summary
Cboe BZX Exchange wants to start offering options on the Fidelity Ethereum Fund, letting investors trade new types of contracts tied to this popular crypto fund. This change affects traders and investors looking for fresh ways to invest in Ethereum through a trusted fund, with the proposal now open for public comments before it goes live. If approved, it could bring more excitement and money moves to the market soon!
Analyzed Economic Effects
5 provisions identified: 3 benefits, 1 costs, 1 mixed.
Options on Fidelity Ethereum Fund
The Exchange filed on January 24, 2025 (Amendment No. 1 on February 3, 2025) to list options on the Fidelity Ethereum Fund. If approved, investors will be able to trade options tied to the Fidelity Fund, which began trading July 23, 2024 and had 41,700,000 shares outstanding as of December 23, 2024.
Listed Options vs OTC Benefits
The Exchange says listed Fidelity Fund options would let investors trade in a listed market instead of the unregulated OTC options market. Listed trading offers increased transparency, faster execution, and OCC clearing that guaranties option obligations.
25,000-Contract Position Limit
The Exchange proposes position and exercise limits of 25,000 same-side option contracts for Fidelity Fund options. The filing states 25,000 contracts could equate to 2,500,000 shares (about 6.0% of the 41,700,000 outstanding shares) and a value of $85,925,000 using a $34.37 share price as of December 23, 2024.
Settlement Style, Expirations, Strikes, Increments
Fidelity Fund options would be physically settled, American-style contracts and may be listed with weekly, monthly, quarterly expirations or LEAPS (12–39 months). Strike intervals will be $1 for strikes $200 or less and $5 for strikes over $200; minimum quoting increments are $0.05 for option prices under $3.00 and $0.10 for prices $3.00 or higher.
Surveillance and Market Protections
The Exchange will apply existing surveillance and will use Intermarket Surveillance Group (ISG) sharing and a FINRA regulatory services agreement to monitor trading in the Fidelity Fund options for manipulation. The filing cites coordination with CME surveillance and prior Commission findings about correlation between CME Ethereum futures and spot Ethereum markets.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163 — The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-12252 — Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Pearl Options Exchange Fee Schedule To Establish Fees for the Trade-by-Trade Report
MIAX Pearl Options Exchange is adding new fees for their Trade-by-Trade Report starting now. Traders and firms who want this detailed report will pay a monthly subscription or a fee for one-time historical data requests, with discounts if they also buy related reports. This change helps the Exchange cover costs and keeps data access clear and fair.
2026-12259 — Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the Exchange's Options Regulatory Fee (ORF)
Starting July 1, 2026, Nasdaq Texas is raising the fee traders pay when they trade options, called the Options Regulatory Fee (ORF). This change affects anyone trading options on Nasdaq Texas and updates how the fee is described to match other Nasdaq exchanges. The new fee kicks in right after the filing, so traders should get ready for a slightly higher cost soon!
Previous / Next Documents
Previous: 2025-02555 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To List and Trade Shares of the BondBloxx Private Credit Trust Under BZX Rule 14.11(f), Trust Issued Receipts
The SEC is taking extra time to decide if the Cboe BZX Exchange can list and trade shares of the BondBloxx Private Credit Trust. This affects investors interested in this new trust and means the decision deadline is now March 30, 2025, giving regulators more time to review. No money changes yet, just a longer wait to see if this new investment option gets the green light.
Next: 2025-02557 — Self-Regulatory Organizations; NYSE American LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Amend Certain Rules Related to Flexible Exchange Options on the Grayscale Bitcoin Trust
NYSE American wants to add flexible options for the Grayscale Bitcoin Trust, giving investors more ways to trade. The SEC is taking extra time to review this change, pushing their decision deadline to March 27, 2025. This affects anyone interested in Bitcoin-related trading and could open new money-making moves once approved.