The New York Stock Exchange has removed key trading restrictions on cryptocurrency ETF options through its affiliated platforms NYSE Arca and NYSE American. The rule change, effective March 2026 after SEC approval, abolishes the 25,000-contract position limit and allows larger positions across 11 Bitcoin and Ether exchange-traded funds.
Fixed Cap Replaced by Liquidity-Based Dynamic Limits
NYSE Arca and NYSE American filed multiple rule changes on March 10, according to Federal Register records. The SEC acknowledged the filings and waived the standard 30-day waiting period, making the changes effective immediately. Previously, traders faced a strict 25,000-contract cap since these products launched in November 2024, designed to control volatility and reduce manipulation risks. Now, that ceiling is removed entirely. Position sizes will depend on each ETF's liquidity and trading activity, and in some cases can rise to 250,000 contracts or more. The update also permits broader use of FLEX options, which offer customized strike prices and expiry dates.
11 BTC/ETH ETF Options Covered
The rule applies to 11 crypto ETF options listed on NYSE platforms, including major funds such as BlackRock's iShares Bitcoin Trust, Fidelity's Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, and products from Bitwise and Grayscale. Earlier in late July, the SEC approved removing limits for Grayscale Bitcoin Trust ETF options, setting a precedent for this broader change.
Nasdaq and Cboe Follow Suit
Other exchanges have taken similar steps. Nasdaq and Cboe eased restrictions earlier in 2026. Nasdaq International Securities Exchange has proposed raising position limits for BlackRock's iShares Bitcoin Trust to 1 million contracts, though that proposal remains under SEC review.
Removing the caps aligns crypto ETF options with standard commodity ETF options tied to assets like gold and oil. Institutions can now execute larger trades without fixed limits. This change may boost trading activity and liquidity, while enabling advanced strategies such as hedging and covered calls. However, larger positions could amplify price swings during volatile periods.