SEC Notice: BOX Exchange Proposes to Remove Trading Restrictions on Crypto ETF Options (Bitcoin & Ethereum)
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
On March 27, 2026, BOX Exchange LLC filed a proposed rule change (SR-BOX-2026-06) with the SEC to amend BOX Rules 5055 (FLEX Equity Options) and 3120 (Position Limits) for options on eleven crypto asset ETFs covering Bitcoin and Ethereum products. The proposal standardizes treatment of these crypto ETF options to match all other equity options listed under Exchange Rule 5020(h). The core change removes the previously imposed 25,000-contract position and exercise limit caps for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH. It also removes the rule text requiring aggregation of FLEX and non-FLEX positions in IBIT, GBTC, BTC, and BITB for position limit calculation purposes. Additionally, the proposal lifts the explicit prohibition on trading FLEX Equity Options for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH. The SEC waived the normal 30-day operative delay, allowing the rule change to become effective immediately upon filing. This competitive filing mirrors a similar proposal already submitted by Nasdaq ISE (SR-ISE-2026-01) in January 2026. The Commission may still summarily suspend the change within 60 days if deemed necessary in the public interest. Comments from interested parties are due by April 24, 2026, referencing file number SR-BOX-2026-06.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Removes the 25,000-contract position and exercise limit cap for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH options, replacing it with standard Rule 3120/3140 limits
- Eliminates the requirement to aggregate FLEX and non-FLEX positions in IBIT, GBTC, BTC, and BITB when calculating position and exercise limits under Rules 3120 and 3140
- Lifts the prohibition on trading FLEX Equity Options for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH, allowing these to trade as FLEX options like all other equity options
+ 3 more changes with Pro
Obligations
What this law requires
BOX Exchange LLC must amend BOX Rules 5055 (FLEX Equity Options) and 3120 (Position Limits) to remove the 25,000-contract position and exercise limit caps for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH crypto asset ETFs
BOX Exchange LLC must remove the rule text in Rule 5055(i)(4) requiring aggregation of FLEX and non-FLEX positions in IBIT, GBTC, BTC, and BITB for position limit calculation purposes
BOX Exchange LLC must lift the explicit prohibition on trading FLEX Equity Options for FBTC, ARKB, ETHA, FETH, ETHW, ETHE, and ETH to align with treatment of other equity options listed under Exchange Rule 5020(h)
SEC must allow the rule change (SR-BOX-2026-06) to become effective immediately upon filing, with the waived 30-day operative delay as filed on March 27, 2026
Interested parties must submit comments on proposed rule change SR-BOX-2026-06 by April 24, 2026, referencing file number SR-BOX-2026-06