SEC Lets Traders Bet on Ethereum ETFs: Crypto Goes Mainstream Options
Published Date: 4/17/2025
Notice
Summary
Cboe EDGX Exchange just gave the green light to trade options on three popular Ethereum ETFs: Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Bitwise Ethereum ETF. This means investors can now buy and sell options on these ETFs starting right away, opening up fresh ways to invest in Ethereum through the stock market. If you’re into crypto or options trading, this change could shake up your portfolio and trading strategies fast!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Options Now Tradable on Three Ethereum ETFs
Cboe EDGX will list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The Exchange filed the proposal on April 10, 2025 as immediately effective and will open at least one expiration month at the commencement of trading.
Position and Exercise Limits Set at 25,000
Options on each Ethereum Fund will have position and exercise limits of 25,000 same-side option contracts as specified by Rules 18.7 and 18.9. The Exchange explained this is the default limit and compared it to higher limits that some funds could qualify for.
Strike Intervals and Minimum Increments Defined
Strike price intervals will be $1 for strikes $200 or less and $5 for strikes over $200; the Exchange may also use $0.50, $2.50, and $5 strike programs. Minimum quoting increments will be $0.05 for series priced below $3.00 and $0.10 for series priced at $3.00 or higher (with Penny Interval Program exceptions).
Options Will Be Physically Settled, American-Style
Options on the Ethereum Funds will be physically settled contracts with American-style exercise, meaning they can be exercised at any time prior to expiration and, if exercised, result in delivery of the underlying Fund shares.
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Previous / Next Documents
Previous: 2025-06511 — Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3
Cboe EDGX Exchange is updating Rule 19.3 to change how they decide which stocks can have options traded on them. This affects traders and investors using EDGX Options by potentially expanding or refining the list of eligible stocks. The change took effect immediately on April 10, 2025, with no new fees involved.
Next: 2025-06513 — Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules To List and Trade Options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF
Cboe BZX Exchange is now letting traders buy and sell options on three popular Ethereum ETFs: Grayscale Ethereum Trust, Grayscale Ethereum Mini Trust, and Bitwise Ethereum ETF. This change means more ways to invest in Ethereum through options, starting right away. Investors and traders can jump in to explore new opportunities with these crypto-related ETFs on April 10, 2025.