The U.S. Securities and Exchange Commission (SEC) published a notice on January 21 approving a rule change proposed by Nasdaq Stock Market LLC that lifts position and exercise limits on options tied to certain Bitcoin and Ethereum exchange-traded funds (ETFs). Effective immediately, the previous ceiling of 25,000 contracts has been replaced by a uniform limit of 250,000 contracts—bringing these products in line with the standard used for BlackRock’s iShares Bitcoin Trust (IBIT).
Fast-Tracked Approval and Immediate Effectiveness
Nasdaq submitted the rule filing on January 7, seeking to amend Options 9, Sections 13 and 15 under the Nasdaq Options Market rules. The SEC determined that the proposal met applicable criteria for investor protection and competitive fairness, and granted a waiver of the standard 30-day operative delay. The Commission stated: “The proposed rule change has become effective.” However, the SEC retains authority to suspend the rule within 60 days if it deems necessary for the public interest or investor protection.
Twelve Crypto ETFs Benefit from Standardized Limits
The affected products include the Fidelity Wise Origin Bitcoin Fund, BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, ARK21Shares Bitcoin ETF, VanEck Bitcoin ETF, along with Ethereum-focused ETFs: BlackRock’s iShares Ethereum Trust, Fidelity Ethereum Fund, Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust. All will now operate under a 250,000-contract limit, up from 25,000.
Market Impact and Outlook
The 10x increase in contract capacity is expected to boost liquidity and attract institutional participation. Previously, restrictive caps drove large traders toward over-the-counter derivatives; now the Nasdaq market can accommodate larger hedging and speculative strategies. Bitcoin traded near $99,400 and Ethereum at $3,520 following the announcement. While the SEC retains oversight flexibility, the move is widely viewed as a bullish catalyst for the crypto derivatives ecosystem.