Cboe Exchange Launches iShares Ethereum Options Trading Fast
Published Date: 4/17/2025
Notice
Summary
Cboe Exchange just got the green light to list options on the iShares Ethereum Trust, opening new ways for investors to trade Ethereum-related products. This change kicks in immediately, letting traders jump in fast and potentially boost market activity. If you’re into crypto or options, this update could shake up your trading game starting now!
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Cboe May List ETH ETF Options
On April 9, 2025, Cboe filed a rule change that allows the Exchange to list and trade options on the iShares Ethereum Trust (the Trust). If you invest in or trade options, this gives you a new, exchange-listed way to gain exposure to the price of ether through the Trust.
Listed Options Move Activity From OTC
The filing says investors who traded options on ether in the unregulated OTC market may prefer the listed option market because listed options give exchange trading, OCC clearing, OPRA reporting, and more market transparency. That could make it easier and safer to open and close ether-related option positions on an exchange.
25,000-Contract Position and Exercise Limits
The Exchange proposes a same-side position limit and equivalent exercise limit of 25,000 option contracts for options on the iShares Ethereum Trust. The filing explains the 25,000 limit and compares it to the Trust's market capitalization and average daily volume to support that level.
Trust Excluded From FLEX Options
The Exchange amends Rule 4.20 to exclude the iShares Ethereum Trust from the provision that would permit FLEX option classes on an equity security. That means FLEX-style customizable options will not be authorized for this Trust.
Settlement, Strikes, and Minimum Increments Set
Options on the Trust will be physically settled with American-style exercise. Strike intervals will be $1 (when strike ≤ $200) and $5 (when strike > $200). Where an option price is under $3.00 the minimum increment will be $0.05, and at $3.00 or higher the minimum increment will be $0.10 (with penny-interval program alternatives noted in the filing).
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Previous / Next Documents
Previous: 2025-06508 — Self-Regulatory Organizations; Cboe EDGX Exchange, 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
Cboe EDGX Exchange is updating its rules to let people trade options on the iShares Ethereum Trust, a popular crypto-related fund. This change means investors can now bet on Ethereum’s price moves through options starting right away, opening new ways to invest and manage risk. Traders and crypto fans should watch for this fresh opportunity hitting the market immediately with no extra fees announced yet.
Next: 2025-06510 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3
Cboe BZX Exchange is updating its rules to allow more types of Fund Shares to be listed and traded as options. This change affects traders and investors by expanding the kinds of securities they can trade on the Exchange. The new rule takes effect immediately, aiming to boost trading opportunities without extra costs.