Nasdaq ISE has filed to raise options position limits again for BlackRock’s spot Bitcoin ETF IBIT.
The proposal calls for increasing the current limit to 1,000,000 contracts. This step not only opens the door to institutions but also signals an expansion on a scale that will fundamentally alter market dynamics.
The magnitude of the decision becomes clearer when considering the 25,000 contract limit typically applied to standard ETFs. Even the increase in the IBIT limit from 25,000 to 250,000 in July was considered a significant development. Bloomberg analyst Eric Balchunas, speaking about the significance of the new proposal, said, “A new proposal has been submitted to increase the limit on IBIT options to 1 million contracts. The limit was raised from 25,000 to 250,000 in July. IBIT is now the world’s largest Bitcoin options market in terms of open interest.”
Cryptocurrency market analyst Adam Livingston described the development as “extraordinarily bullish,” emphasizing a structural turning point for Bitcoin. According to Livingston, Nasdaq has placed IBIT in the same category as the world’s largest and most liquid stocks in terms of liquidity and trading frequency. This category only includes the following giant holdings: Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), SPY, and QQQ.
The new regulation opens up 40 times more institutional derivatives trading space to the Bitcoin ETF. According to Livingston, this expansion represents a “transition from the ETF adoption phase to a new era of scaling derivatives.” Analysts, noting that Bitcoin price discovery has historically seen its steepest spikes during periods of growth in derivatives markets, argue that IBIT has reached “mega-cap status.”
*This is not investment advice.