MIAX Updates Rules for Fidelity Ethereum Options Trading
Published Date: 4/17/2025
Notice
Summary
Starting now, the Miami International Securities Exchange (MIAX) will let traders buy and sell options on the Fidelity Ethereum Fund, a new type of investment tied to Ethereum. This change updates the rules about what can be traded, how many options a person can hold, and how many can be exercised. Investors and traders should get ready to explore these fresh opportunities with no delay!
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
MIAX Lists Options on Fidelity Ethereum Fund
MIAX filed on April 9, 2025 to list and trade options on the Fidelity Ethereum Fund, and the change is immediately effective. You (as an investor or trader) can now buy and sell listed options on the Fidelity Ethereum Fund on the MIAX exchange.
25,000-Contract Position and Exercise Limits
The Exchange proposes a position limit of 25,000 same-side option contracts for the Fidelity Fund and exercise limits equivalent to that position limit. If you are a market participant, you cannot hold or exercise more than 25,000 same-side contracts in this option class under the proposed rules.
Listed Options Offer OTC-to-Listed Migration Benefits
The Exchange states that listing these options may move trading from the unregulated OTC market into a listed market, giving investors benefits such as enhanced efficiency, increased market transparency, and the OCC's guarantee of listed options. You may prefer to trade the listed product for those reasons.
Options Are Physically Settled, American-Style
Options on the Fidelity Fund will be physically settled contracts with American-style exercise. That means if you exercise a contract you will receive (or deliver) the underlying Fidelity Fund shares rather than a cash settlement.
Standard Strike Intervals and Minimum Increments Apply
The Fidelity Fund options will follow MIAX listing and trading rules for expirations, strike-price intervals (e.g., $0.50, $1, $2.50 where applicable) and minimum quoting increments. Where an option price is less than $3.00 the minimum increment will be $0.05, and where the price is $3.00 or higher the minimum increment will be $0.10.
Exchange Surveillance and Regulatory Sharing Apply
MIAX will apply its existing surveillance procedures to Fidelity Fund options and will use surveillance data from its affiliates and the Intermarket Surveillance Group (ISG), and has a Regulatory Services Agreement with FINRA. These measures are intended to detect and deter manipulation in the options and underlying shares.
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Department and Agencies
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Previous / Next Documents
Previous: 2025-06498, Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Fidelity Ethereum Fund
MIAX Sapphire is updating its rules to let people trade options on the Fidelity Ethereum Fund, a popular crypto-related investment. This change means investors can now buy and sell options on this fund right away, making the market more exciting and flexible. The update took effect immediately on April 9, 2025, opening new doors for traders and potentially boosting trading activity.
Next: 2025-06500, Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust
Nasdaq BX just gave the green light to list options on five popular Ethereum funds, including iShares and Grayscale trusts. This means investors can now trade options on these crypto-related funds right on the exchange, with new rules to keep trading fair and limits in place. The change took effect immediately on April 9, 2025, opening fresh opportunities for traders and investors alike.