NYSE American Unlocks FLEX Options for Bitcoin ETFs
Published Date: 8/1/2025
Notice
Summary
Starting soon, traders can buy and sell FLEX options on shares of the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust ETF, and the Bitwise Bitcoin ETF on the NYSE American exchange. This change gives investors more flexible ways to trade these popular Bitcoin-related funds, potentially opening new opportunities without immediate cost impacts. The SEC gave the green light after careful review, so get ready for more Bitcoin trading fun!
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
FLEX Options Approved for Three Bitcoin Funds
The SEC approved trading of FLEX options on shares of the Grayscale Bitcoin Trust (GBTC), the Grayscale Bitcoin Mini Trust ETF (BTC), and the Bitwise Bitcoin ETF (BITB) on NYSE American. The approval was ordered July 29, 2025 and permits investors to trade customizable FLEX options on these three exchange-traded products.
25,000-Contract Aggregated Position Limit
The Exchange will apply a 25,000-contract position and exercise limit to each Fund (GBTC, BTC, and BITB), aggregating FLEX and non-FLEX options for each Fund. The Exchange says that 25,000 contracts corresponds to up to 2,500,000 shares deliverable if all options were exercised.
Exchange Trading Reduces OTC Counterparty Risk
The order notes FLEX options on these Funds will be exchange-traded and issued and guaranteed by The Options Clearing Corporation (OCC), which mitigates counterparty credit risk compared with over-the-counter trading. The Exchange cited price discovery and centralized transaction reporting as additional benefits over OTC trading.
Existing Surveillance and Systems Will Monitor FLEX Trading
The Exchange stated it and The Options Price Reporting Authority have capacity to handle FLEX Fund Options and that the same surveillance procedures that apply to non-FLEX options on GBTC, BTC, and BITB will apply to FLEX Fund Options. The Exchange is a member of the Intermarket Surveillance Group and uses FINRA surveillance under a regulatory services agreement.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
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!
2026-17283, Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the CDS Instrument On-Boarding Policies and Procedures
ICE Clear Credit LLC is updating how it adds new credit default swap (CDS) contracts for clearing. This change makes the process clearer and smoother for everyone involved, including the companies that use these contracts. The update kicks in soon and helps keep things running efficiently without extra costs.
Previous / Next Documents
Previous: 2025-14545, Self-Regulatory Organizations; NYSE Arca, Inc.; Order Approving a Proposed Rule Change, as Modified by Amendment No. 2, To Amend Rules Regarding Position and Exercise Limits for Options on the Grayscale Bitcoin Mini Trust (“BTC”) and the Bitwise Bitcoin ETF (“BITB”) and To Permit Flexible Exchange Options on BTC and BITB
NYSE Arca just got the green light to change the rules for options trading on two popular Bitcoin funds, BTC and BITB. They’re raising the limits on how many options traders can hold and letting these options trade with more flexibility. These updates kick in soon and could open up new ways for investors to play in the Bitcoin options market.
Next: 2025-14547, Self-Regulatory Organizations; NYSE Arca, Inc.; Order Granting Approval of a Proposed Rule Change To List and Trade Shares of the Bitwise Bitcoin and Ethereum ETF Under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares)
The SEC just gave the green light for NYSE Arca to list and trade shares of the Bitwise Bitcoin and Ethereum ETF, letting investors easily buy into both cryptocurrencies through one fund. This means folks who want to invest in Bitcoin and Ethereum can do so on a big stock exchange starting soon, making crypto investing simpler and more official. Keep an eye out for when trading kicks off and how this could shake up your portfolio!