Options guide · Reviewed 31 October 2026
Bitcoin options: what they are written on
Listed bitcoin options come in at least two forms. Some are written on shares of an exchange-traded fund, and some on a CME bitcoin futures contract. For the CME route, CME says no digital wallet is needed. For ETF options, the underlying is the fund's shares.
The short answer
- Options on a spot bitcoin ETF, such as options on IBIT, have fund shares as their underlying. A Bitcoin Magazine article published on Nasdaq.com on 20 September 2024 reported that the SEC had approved options on the iShares Bitcoin Trust, quoting a note that the Options Clearing Corporation and the CFTC still had to approve before listing.
- CME options on bitcoin futures give the buyer the right to buy or sell one bitcoin futures contract. CME says that for its cryptocurrency options you do not need a digital wallet (CME FAQs, read 31 October 2026).
- CME also lists options on Ether futures and Micro Ether futures. This guide does not give their contract sizes because they were not checked.
The sources read here do not give the contract size, settlement or exercise style of options on IBIT or any other bitcoin ETF. Take those from your broker's contract specification.
Route one: options on a spot bitcoin ETF
The underlying is the fund's shares. A bitcoin ETF's share price is its own number, so it is not the same as a price per bitcoin. For a calculator, use the share price of the fund the option is written on, and the multiplier from your contract specification.
Route two: CME options on bitcoin futures
CME's specification, as read on 31 October 2026:
| Term | CME option on (standard) Bitcoin futures |
|---|---|
| Contract unit | 1 bitcoin futures contract, which represents 5 bitcoin |
| Price quotation | U.S. dollars per one bitcoin |
| Exercise | European: only on the last day of trading |
| At expiry | In-the-money options expire into a futures contract that cash settles to the CME CF Bitcoin Reference Rate |
| Last trading day | The last Friday of the contract month |
CME's general FAQ for its cryptocurrency options says they are European-style and automatically exercised if in the money at expiry. The bitcoin-specific FAQ page is dated 2020, so confirm the contract unit, tick sizes, last trading day and listing cycles on CME's current pages before relying on them.
CME also lists options on Micro Bitcoin and Bitcoin Friday futures; their sizes were not checked and differ from the table above. European-style means exercise only at expiry; see American vs. European options for what exercise style changes.
A worked example (illustrative numbers, not quotes)
Payoff basics explains the long-call shape. Say a CME bitcoin option is quoted at $2,000 per bitcoin. The contract represents 5 bitcoin, so the premium is 5 × $2,000 = $10,000 per contract.
The options profit calculator applies a fixed multiplier of 100, right for a standard stock option but not for a 5-bitcoin contract. Its profit and loss figures for a CME bitcoin option need scaling by 5 ÷ 100, or 0.05. If the calculator shows a $200,000 maximum loss for a $2,000 premium, one 5-bitcoin contract's maximum loss is $10,000.
Which price goes into a calculator
| Option | Underlying price to use | Multiplier |
|---|---|---|
| Option on a bitcoin ETF | The fund's share price | From your contract specification |
| CME bitcoin option | The bitcoin futures price, in dollars per bitcoin | 5 bitcoin (CME) |
The bitcoin price the option price calculator can prefill is a spot reference, cached and refreshed about twice a day. It is neither a futures price nor an ETF share price, and it can be hours old. See using an options calculator when the underlying is gold or bitcoin for the full checklist.
Questions people ask
Can I get bitcoin by exercising a CME bitcoin option?
No, according to CME: its crypto options end in cash or in a futures position that is itself settled in cash, so no coins change hands.
Are CME's bitcoin options available around the clock?
CME says its cryptocurrency futures and options can trade 24/7, apart from maintenance windows. For ETF options, ask your broker for trading hours.
Is this advice?
No. This explains how the contracts are built. Options can lose their whole premium, and bitcoin's price can move sharply.
Source note: Contract details were read from CME Group and Nasdaq.com pages on 31 October 2026 and can change. Check the exchange or your broker before trading. This is educational information, not investment advice or a recommendation to buy or sell anything. All calculator inputs stay in your browser.