2026-06475NoticeWallet

Cboe Shrinks Bitcoin ETF Option Steps for Slicker Trades

Published Date: 4/3/2026

Notice

Summary

Cboe Exchange is changing the smallest price step for options on its Mini Bitcoin ETF Index to make trading smoother and clearer. This change affects traders using these options and kicks in quickly after approval, with no extra costs involved. The SEC gave this update a fast green light, so expect the new rules to start soon!

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

MBTX options tick-size lowered

If you trade options on the Cboe Mini Bitcoin U.S. ETF Index (MBTX), the Exchange allows minimum trading increments of $0.01 for series priced below $3.00 and $0.05 for series priced at $3.00 or higher. The rule change was approved on an accelerated basis and will take effect while IBIT options participate in the Penny Interval Program.

Finer ticks may narrow spreads

The Exchange expects the $0.01 and $0.05 increments to allow more granular pricing, which may narrow bid-ask spreads, increase available price points, and boost liquidity—especially for short-dated MBTX option series. The filing states this finer pricing lets investors hedge and price options more precisely.

Increments conditional on IBIT Penny Program

The permitted $0.01 (below $3.00) and $0.05 (at/above $3.00) increments for MBTX options apply only while iShares Bitcoin Trust ETF (IBIT) options participate in the Penny Interval Program. If IBIT options cease participation in that program, the MBTX increments are conditioned accordingly.

Levels playing field with IBIT and futures

Allowing penny and nickel increments is intended to let MBTX options better compete with IBIT, BITO, and FBTC options and with Micro Bitcoin futures; the Exchange notes IBIT option volume was nearly 25 times the next-most-active component and reports a correlation of approximately 0.9999 between MBTX and IBIT. The rule is intended to align MBTX pricing granularity with those competitor products.

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Key Dates

Published Date
4/3/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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