SEC Probes Nasdaq's Plan for Multi-Crypto Options Trading
Published Date: 12/31/2025
Notice
Summary
Nasdaq ISE wants to create new rules for listing options on a special kind of trust that holds lots of different cryptocurrencies. The SEC is reviewing these changes and deciding if they should approve them by the end of 2025. This could affect investors and traders interested in crypto options and might open up new ways to trade these assets.
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Options Allowed on Multi‑Crypto Trusts
Nasdaq ISE proposes to allow listing and trading of options on Commodity-Based Trusts that hold multiple crypto assets (in addition to trusts that hold a single crypto asset). If approved, qualifying ETFs that hold multiple crypto assets could have option series listed on ISE in the same way other ETF options are listed.
Per‑Asset $700M Market‑Value Threshold
For a Commodity-Based Trust that holds multiple crypto assets to qualify for options listing, the Exchange requires each underlying crypto asset to have an average daily market value of at least $700 million over the last 12 months (calculated as total global supply × token price). The rule text specifies that total supply includes all currently issued tokens and that market supply data can be obtained from public sources such as CoinGecko or CoinMarketCap.
Derivatives‑Trading / Surveillance Requirement
Each crypto asset held by a Commodity-Based Trust must underlie a derivatives contract that trades on a market with which the Exchange has a comprehensive surveillance sharing agreement, either directly or through common membership in the Intermarket Surveillance Group (ISG). The Exchange notes examples of such markets include CME and Coinbase Derivatives.
Continued Monthly and Daily Listing Tests
Options on Commodity-Based Trusts listed under the proposal would be subject to continued listing standards requiring that the $700 million average daily market‑value criterion be met on a monthly basis and that the derivatives‑contract/surveillance criterion be met on a daily (continuous) basis. The Exchange may delist or suspend trading if those continued criteria are not satisfied.
Options Trade Under Standard ETF Rules
Options on qualifying Commodity-Based Trusts would trade under the Exchange's existing ETF‑options rules, including expirations (monthly, weekly, quarterly, LEAPS 12–39 months), strike‑price intervals ($1 increments for strikes ≤ $200; $5 increments for strikes > $200), and minimum price increments (e.g., $0.05 for options priced below $3.00 unless eligible for penny increments). Position, exercise limits, and margin requirements that apply to other ETF options will apply here as well.
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