Nasdaq ISE, the options exchange owned by Nasdaq, has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to significantly raise the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT).
The proposed amendment seeks to increase these limits from 25,000 to 250,000 contracts, reflecting the ETF’s growing trading volume and market activity.
Currently, the limits for IBIT options are among the lowest in options trading, prompting Nasdaq ISE to argue that an increase is essential to accommodate the ETF’s expanding market cap of $46.8 billion and average daily trading volume of 39.4 million shares.
Proposed Contract Cap Equals 2.89% of IBIT’s Outstanding Shares
The proposed 250,000 contract limit represents just 2.89% of IBIT’s outstanding shares—far lower than the limits for similar ETFs such as SPDR Gold Shares (GLD) and iShares Silver Trust (SLV), which have higher percentages relative to their floats.
Nasdaq ISE emphasized that this proposal is more conservative than limits applied to GLD, SLV, and the Bitcoin Strategy ETF (BITO).
If approved, the new limits are expected to enhance market liquidity and enable institutional investors to manage risk more effectively.
“The Exchange believes that increasing the position (and exercise) limits for IBIT options would lead to a more liquid and competitive market environment for IBIT options, which will benefit customers that trade these options.”
The SEC now has 45 days to either approve, reject, or begin proceedings on the proposal.
The proposal follows recent regulatory developments, including the SEC’s September approval of rule changes allowing Nasdaq ISE to list and trade options on BlackRock’s IBIT.
The move was part of broader efforts to provide investors with tools to hedge against Bitcoin price fluctuations under regulatory oversight.
Nasdaq has also announced plans to expand its digital asset offerings by seeking approval for Bitcoin options trading, leveraging the CME CF Bitcoin Real-Time Index to enhance market accessibility.
Crypto Products See $585M Inflows in First 3 Days of 2025
Digital asset investment products kicked off 2025 with inflows of $585 million in the first three days of the year.
However, the full week, including the last two trading days of 2024, recorded net outflows of $75 million, according to a recent report by CoinShares.
The report noted that the end of 2024 set a record for global digital asset inflows, reaching $44.2 billion—nearly four times the previous record of $10.5 billion in 2021.
As reported, spot Bitcoin ETFs in the United States recorded a remarkable $35.66 billion in net inflows in 2024, significantly exceeding early industry projections.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) led the market with $37.31 billion in inflows, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $11.84 billion, and ARK’s 21Shares Bitcoin ETF (ARKB) with $2.49 billion.
Other significant contributors included the Bitwise Bitcoin ETF (BITB), which reported $2.19 billion in inflows.
On the Ether ETF front, BlackRock’s iShares Ethereum Trust ETF (ETHA) and Fidelity Ethereum Fund (FETH) led inflows with $3.52 billion and $1.56 billion, respectively.
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