Cboe Exchange Joins Ethereum ETF Options Trading Party Now
Published Date: 4/17/2025
Notice
Summary
Cboe 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 immediately to explore new opportunities with these crypto-related ETFs.
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
Options Now Trade on Ethereum ETFs
Cboe Exchange amended its rules to list and trade options on three Ethereum-backed ETFs: 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 and the change is effective immediately, allowing investors and traders to buy and sell options on these ETFs right away.
25,000-Contract Position Limit Set
The Exchange set a position limit of 25,000 same-side option contracts for each Ethereum Fund option, and the exercise limit for each will be equivalent to that position limit. A 25,000-contract position is effectively equivalent to 2,500,000 underlying ETF shares if all contracts were exercised.
Contract Specs and Listing Cadence Set
Options on the Ethereum Funds will be physically settled American-style. The Exchange may list weekly, monthly, or quarterly series and may list LEAPS that expire from 12 to 180 months. Strike intervals will be $1 or greater when strike price is $200 or less and $5 or greater when over $200. Minimum price increments are $0.05 when the option price is below $3.00 and $0.10 when $3.00 or higher (with penny-interval program exceptions where applicable).
No FLEX Options for These ETFs
The Exchange amended Rule 4.20 to exclude the three Ethereum Funds from being authorized for FLEX (customizable) options trading. That means FLEX-style customizable option contracts will not be available for these ETFs.
Conditions That Can Suspend Option Trading
Options on these ETFs will be subject to the Exchange's continued listing standards and may be suspended or have opening transactions halted if certain events occur. Examples include the Units ceasing to be an NMS stock, trading in the Units being halted on the primary market, the underlying value no longer being calculated or available, or (for Units approved under the creation/redemption standard) having fewer than 50 record/beneficial holders for 30 or more consecutive trading days after the initial 12-month period.
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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
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!
2026-05635, Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets
Starting March 23, 2026, the SEC and CFTC are making it clear that some crypto assets and transactions must follow federal securities laws. This means crypto companies and investors need to play by new rules to keep things fair and safe. Expect more transparency and possible costs for compliance as the government steps up oversight in the crypto world.
Previous / Next Documents
Previous: 2025-06517, Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule Equity 7, Section 3, To Eliminate the Market Data Revenue Rebate Program
Nasdaq PHLX is ending its Market Data Revenue Rebate program, which gave money back to traders who helped boost trading activity. This change affects anyone who used the rebate to save money on market data fees and takes effect immediately, meaning no more rebates starting now. The move aims to simplify fees and update how the Exchange encourages trading.
Next: 2025-06519, Self-Regulatory Organizations; MIAX PEARL, 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 Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF
MIAX PEARL is updating its rules to let people trade options on three popular Ethereum-related funds: the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF. This change means investors can now use options to bet on or protect their investments in these crypto funds starting right away. If you’re into trading or crypto, this opens up fresh ways to play the market with Ethereum funds.