- Nasdaq recommends raising the Bitcoin ETF options limit to 250,000 contracts.
- The SEC has 45 days to make decisions on Nasdaq’s proposal for IBIT.
The Nasdaq’s ISE, a Nasdaq-owned options exchange, has submitted a proposed rule adjustment to the U.S. Securities and Exchange Commission (SEC). The adjustment increases the allowable position and exercise limits for options of the iShares Bitcoin Trust ETF (IBIT) from 25,000 contracts to 250,000. This modification was made in response to the significant rise in trading volume and market activities associated with the ETF.
This discussion revolves around a suggested adjustment, given the escalating market capitalization of $46.8 billion and an average daily share trading volume of 39.4 million. Currently, the limits for IBIT options are relatively low compared to other options trading. However, Nasdaq ISE advocates this increase because of the ETF’s substantial market influence.
New Bitcoin ETF Horizon
The projected maximum contract size for this product is set at 250,000 units, which represents just 2.89% of the available IBIT stock. This is significantly lower than the percentages associated with similar products such as SPDR Gold Shares (GLD), iShares Silver Trust (SLV), and BITO (Bitcoin Strategy) according to Nasdaq ISE, indicating that this ETF has a smaller maximum size compared to its counterparts.
If this proposal gets accepted, it’s anticipated that it would boost market liquidity, thereby enabling institutions to better handle risk. In other words, the Nasdaq ISE suggests that raising position and exercise limits for IBIT options could result in a more fluid market, enhancing overall market efficiency and fostering a more competitive market landscape.
Now, it has advanced its move, asking the Securities and Exchange Commission (SEC) to either approve, reject, or request further action within a 45-day span following its decision in September. In doing so, it enabled rule adjustments that allowed Nasdaq ISE to list and trade BlackRock’s Bitcoin Investment Trust options. This is one of the latest endeavors by Nasdaq; the exchange is currently investigating means to facilitate investor protection against Bitcoin’s volatile price through regulatory-friendly avenues.
2025 saw a significant surge in investment in digital assets, accumulating $585 million within the first three days of the year. In 2024, global accounts experienced an unprecedented influx of $44.2 billion in digital assets, primarily driven by Bitcoin ETFs. Notably, BlackRock’s IBIT led this growth with a staggering $37.31 billion flowing into its account.
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2025-01-09 10:40