Proposed Alteration by MIAX PEARL
The Securities and Exchange Commission (SEC) has received a proposed alteration from MIAX PEARL, LLC, aiming to modify Exchange Rule 402 concerning the criteria for underlying securities. This change would enable the listing and trading of options on the VanEck Bitcoin Trust, a fund strategically designed to provide access to Bitcoin’s performance without the intricacies tied to direct Bitcoin transactions. The announcement was formally made on April 1, 2025, and offers a chance for the public to share their thoughts on this action.
Details of the Proposed Changes
MIAX PEARL has submitted these changes under Section 19(b)(1) of the Securities Exchange Act of 1934 and corresponding rules. The specific updates suggest alterations to Rule 402, commonly used to ascertain which underlying securities are suitable for options trading, thereby positioning the Trust as fit for such arrangements.
A critical aspect of the proposal is the classification of the VanEck Bitcoin Trust as an exchange-traded fund (ETF) that focuses on a commodity, particularly Bitcoin. The Trust’s aim is to reflect Bitcoin’s performance while mitigating operational expenses associated with managing the trust. By adopting these amendments, MIAX PEARL seeks to increase market transparency and offer investors a refined mechanism to hedge Bitcoin-related investments easily.
Trust Viability and Market Interests
As a measure of the Trust’s viability, MIAX PEARL references compliance with its initial listing requirements, confirming that it possesses a sufficient number of outstanding shares and a robust trading volume, both of which are vital for options trading eligibility. Recent statistics cited show that the Trust had 49.9 million shares outstanding as of early March 2025, significantly exceeding the typical benchmark of 7 million shares generally required to initiate options trading. Moreover, its trading activity reflected considerable interest within the market, making it an attractive option for potential investors.
Standards and Surveillance Measures
In addition to establishing that the Trust fits within the necessary criteria, MIAX PEARL emphasizes that options on the Trust will be governed by the same standards applying to other options on ETFs available on the Exchange. These standards encompass minimum increments, position limits, and transparency protocols designed to give an orderly and equitable trading environment for all participants.
The introduction of options for the VanEck Bitcoin Trust will also be accompanied by strict surveillance measures to mitigate the risk of market manipulation. MIAX PEARL has committed to applying its existing surveillance systems and cooperating with its partners, including the Financial Industry Regulatory Authority (FINRA) and the Intermarket Surveillance Group (ISG), to foster an environment resistant to fraudulent trading practices.
Public Engagement and SEC Review
The Exchange encourages interested parties to voice their opinions on this proposal, highlighting its potential attributes of cost efficiency, enhanced liquidity, and enriched trading sophistication. The SEC will assess feedback and make a determination on MIAX PEARL’s request, ensuring compliance with all regulatory expectations designed to protect investors while sustaining market integrity.
