"Nasdaq has filed a rule change with the U.S. Securities and Exchange Commission seeking to remove position and exercise limits on options tied to spot Bitcoin exchange-traded funds, a move that would further integrate crypto-linked products into traditional derivatives markets. The proposal, originally filed on Jan. 7 and made effective this week on the 21st, eliminates the current 25,000-contract cap on options linked to Bitcoin and Ethereum ETFs listed on Nasdaq."
"Options are derivative contracts that give traders the right, but not the obligation, to buy or sell an asset at a predetermined price before a set expiration date. Position and exercise limits are typically imposed to prevent concentrated positions that could amplify volatility or destabilize markets. The filing builds on Nasdaq's approval in late 2025 to list options on single-asset crypto ETFs as commodity-based trusts."
Nasdaq filed a rule change with the U.S. Securities and Exchange Commission to remove position and exercise limits on options tied to spot Bitcoin exchange-traded funds. The change eliminates the 25,000-contract cap on options linked to Bitcoin and Ethereum ETFs listed on Nasdaq and affects funds from BlackRock, Fidelity, Grayscale, Bitwise, ARK/21Shares and VanEck. The SEC waived its standard 30-day waiting period so the rule change took effect immediately while retaining authority to suspend it within 60 days. A public comment period is open and a final SEC determination is expected by late February unless paused. Nasdaq said the change treats crypto ETF options like other qualifying options and supports market efficiency while maintaining safeguards against manipulation and excessive risk.
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