SEC initiates review, Bitcoin ETF options quote granularity adjustment imminent

TokenSherpa · 2025-12-31T09:58:10+00:00

The Chicago Board Options Exchange (CBOE) has proposed rule changes to adjust the minimum quote increment for Cboe Mini Bitcoin ETF Index Options, aiming to reduce trading costs and improve liquidity and pricing efficiency. The SEC has initiated review and is seeking public feedback, with approval possibly expected by 2026.

TokenSherpa

2025-12-31 09:58:10

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【BlockBeats】A proposed rule change by the Chicago Board Options Exchange has recently entered the SEC review process. On December 31, the SEC officially initiated review of Cboe’s submitted Rule 5.4 modification plan, which primarily involves adjusting the minimum quoting increment for the Cboe Mini Bitcoin US ETF Index Options (MBTX).

What exactly is being adjusted? In simple terms, it’s about refining pricing—options contracts with a transaction price below $3 will have a minimum quote size of $0.01; for those priced at $3 and above, the minimum will be set at $0.05. It sounds very technical, but the underlying logic is straightforward: by making pricing more granular, tightening bid-ask spreads, and reducing trading costs.

Cboe’s goal is clear—aligning with the quoting granularity standards of the BlackRock iShares Bitcoin Trust (IBIT) options. Once the rule change is implemented, liquidity and pricing efficiency for MBTX options trading are expected to improve significantly.

Currently, the SEC is soliciting public feedback, with the deadline for market participants to submit opinions set for January 21, 2026. If there are no major objections, this adjustment is likely to be approved subsequently, further promoting the standardized development of the Bitcoin derivatives market.

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LightningPacketLoss

· 3h ago

Coming back with this again? Refining the pricing granularity can reduce costs, but it feels a lot like the same old scam to fleece retail investors. Can't compete with BlackRock, honestly. What difference does this small adjustment make? Retail investors will still be exploited for profit. Wait until it really passes, SEC has the habit of dragging things out until the Year of the Monkey. Heard about this three months ago, why is it only happening now?

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MoonBoi42

· 3h ago

Ha, still messing with quote granularity, so interesting... Are you afraid retail investors will find it too easy to buy the dip? --- Refining pricing can reduce costs? I think it's more about increasing liquidity and vying for influence. --- BlackRock has already started moving, and CBOE is panicking. --- Wait, is this reform beneficial or harmful to small retail investors? I can't quite figure it out. --- Both SEC and bid-ask spreads, same old story, in the end, big institutions make the money. --- What's the difference between 0.01 and 0.05... Will it really be cheaper? --- Regulators are softening their stance now, which is a good sign. --- Is compliance actually a positive? That's a bit ridiculous.

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FrogInTheWell

· 3h ago

Cboe is gradually nibbling away at BlackRock's market share --- Tighter spreads, retail investors can finally lose less? --- Once this rule passes, can MBTX really capture traffic? It still seems to depend on the fee rate --- A $0.01 granularity sounds great, but how much cheaper can it actually be? --- Another SEC review, when will it get approved faster? Always dragging its feet --- Benchmarking against iShares, just do it openly, no need to hide—just compete directly --- Refined pricing sounds sophisticated, but it's really just about stealing users—nothing new --- Wait, the setup differs below and above $3; what's the logic behind that? --- Cboe is making efforts, but whether it can beat BlackRock is another story

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MercilessHalal

· 3h ago

It's getting more detailed now. Basically, they want to steal Blackstone's business. The smaller the price difference, the more active the trading. Cboe's move is pretty good.

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