Nasdaq has filed a rule change with the U.S. Securities and Exchange Commission (SEC) to remove position limits on Bitcoin and Ethereum ETF options. The proposal aims to raise the current cap of 25,000 contracts per account for these crypto-based products.
The filing covers options tied to several spot Bitcoin and Ether ETFs listed on Nasdaq, including funds from BlackRock, Fidelity, Grayscale, Bitwise, ARK/21Shares, and VanEck. Nasdaq says the change would align these products with options on other commodity-based ETFs that are not subject to the same strict caps.
Nasdaq argues that Bitcoin and Ether ETFs now trade with deep liquidity and broad participation. In its view, the 25,000 contract limit no longer matches the size and maturity of the market.
How The Nasdaq Proposal Works And What Changes
Under the proposal, Bitcoin and Ether ETF options would instead follow Nasdaq’s standard position and exercise limit framework. This means limits would be based on the size and activity of each ETF, similar to rules used for gold, oil, and stock index options.
The filing notes that spot Bitcoin and Ether ETFs have attracted strong inflows since launch, and their options have built consistent open interest. Nasdaq says higher limits would let institutional traders and market makers run larger hedging and arbitrage strategies, which could improve overall liquidity.
Additionally, Nasdaq has requested that the SEC suspend the customary 30-day waiting period in order to expedite the rule’s implementation. The SEC may still review or suspend the modification within a lengthier 60-day timeframe, but it has opened a comment window.
What It Could Mean For Crypto Derivatives
If the SEC fully permits the update, options on spot Bitcoin and Ether ETFs could scale more like traditional derivatives. Large asset managers would gain more room to hedge ETF holdings, while specialized firms could provide tighter spreads.
Analysts say the step fits a broader pattern of treating major crypto assets as commodities within the U.S. derivatives system. Other options exchanges, such as Nasdaq ISE, have already sought similar relief on position limits for crypto ETF options, signaling a coordinated move toward looser caps in this segment.
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