Bitcoin ETF Options? SEC Weighs Crypto Trading Twist
Published Date: 7/2/2025
Notice
Summary
Cboe Exchange wants to start listing and trading options on the VanEck Bitcoin ETF, giving investors new ways to trade Bitcoin-related products. The SEC is reviewing some rule changes to make this happen but hasn’t decided yet. If approved, this could open up fresh trading opportunities soon, possibly affecting how people invest in Bitcoin ETFs.
Analyzed Economic Effects
6 provisions identified: 3 benefits, 2 costs, 1 mixed.
Exchange may list VanEck Bitcoin ETF options
Cboe filed to amend rules to allow the Exchange to list and trade options on the VanEck Bitcoin ETF. The filing (Amendment No. 4) was submitted March–May 2025 and is subject to SEC review with a decision deadline of July 2, 2025.
Position and exercise limits set at 25,000
Cboe proposes to set a position limit and equivalent exercise limit of 25,000 same-side option contracts for the VanEck Bitcoin ETF under Rule 8.30. The Exchange calculated that 25,000 contracts is equivalent to about 2,500,000 shares, or approximately 5.01% of the 49,900,000 shares outstanding as of March 5, 2025.
Listed options could move OTC activity onto exchange
The Exchange states that listing VanEck Bitcoin ETF options may cause investors who trade OTC options to instead trade listed options, providing enhanced efficiency, increased market transparency, and counterparty creditworthiness from the Options Clearing Corporation (OCC).
VanEck ETF excluded from FLEX options
The proposed rule change amends Rule 4.20 to exclude the VanEck Bitcoin ETF from the Exchange's ability to authorize FLEX (customizable) option classes for that ETF. If adopted, FLEX option contracts would not be available on the VanEck Bitcoin ETF.
Options will be physically settled, American-style
The proposed VanEck Bitcoin ETF options would be physically settled contracts with American-style exercise rights. The Exchange will open at least one expiration month at commencement and may list weekly, monthly, quarterly, and LEAPS (12–180 months).
Surveillance and market safeguards applied
Cboe states it will apply its existing surveillance program, coordinate with Cboe BZX and the Intermarket Surveillance Group (ISG), and use FINRA under a Regulatory Services Agreement to surveil options on the VanEck Bitcoin ETF to deter and detect manipulation.
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