Another Exchange Unlocks Ethereum ETF Options Trading Immediately
Published Date: 4/17/2025
Notice
Summary
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.
Analyzed Economic Effects
5 provisions identified: 4 benefits, 1 costs, 0 mixed.
Options Listed on Three Ethereum ETFs
Cboe BZX 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 rule change on April 10, 2025 and trading of these options may commence upon the Exchange's listing procedures.
Physical Settlement; American-Style Exercise
Options on each Ethereum Fund will be physically settled contracts with American-style exercise, meaning option holders may exercise prior to expiration and resulting settlements involve delivery/receipt of shares. This settlement style applies to these Ethereum Fund options as stated in the filing.
25,000-Contract Position and Exercise Limit
The Exchange will set position and exercise limits for options on the Ethereum Funds at 25,000 same-side option contracts. The filing explains this 25,000-contract limit and compares it to higher limits available for other ETFs.
Strike Intervals and Minimum Increments Specified
Strike price intervals will be $1 or greater when strike is $200 or less and $5 or greater when strike is over $200; the Exchange may also list series under $1, $0.50, $2.50, or $5 strike programs. Minimum quoting/increment rules: where option price is under $3.00 the minimum increment will be $0.05 and where $3.00 or higher the minimum increment will be $0.10 (with penny-interval program exceptions noted).
Allowed Expirations and LEAPS Availability
The Exchange will open at least one expiration month at commencement of trading and may list weekly, monthly, quarterly expirations and long-term equity options (LEAPS) that expire from 12 to 39 months for these Ethereum Fund options.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
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2026-10373, Registered Offering Reform
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2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
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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!
2026-05635, Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets
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Previous / Next Documents
Previous: 2025-06512, Self-Regulatory Organizations; Cboe EDGX 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 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!
Next: 2025-06514, Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Various Provisions of Exchange Rule 14.11
Cboe BZX Exchange wants to update its rules for Market Makers who trade certain derivative securities. They’re making it easier by changing how these traders report their related accounts and removing a ban on trading in unreported accounts. This affects Market Makers and could speed up trading without extra costs, with changes proposed as of March 31, 2025.