Nasdaq ISE Seeks Tenfold Boost in Bitcoin ETF Options

• 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 ISE is an options exchange owned by Nasdaq. This has filed a proposed rule change with the U.S. The Securities and Exchange Commission increased the position and exercise limits for options of the iShares Bitcoin Trust ETF (IBIT) from 25,000 contracts to 250,000. This change was due to the increased trading volume and associated market activities of the ETF.

This is a proposed change considering the growing market cap of $46.8 billion and average daily trading volume of 39.4 million shares. The limits for IBIT options are currently among the lowest in options trading. Nasdaq ISE justifies the increase due to the ETF’s large market presence.

New Bitcoin ETF Horizon

The anticipated contract limit is at 250,000, an equivalent proportion that translates to only 2.89% of outstanding IBIT stock, a substantially lower percentage value as compared with others in that line of comparable products like the SPDR Gold Shares (GLD) or the iShares Silver Trust (SLV) since Nasdaq ISE showed this is considerably smaller than similar caps on other existing ETF products including GLD, SLV and BITO (Bitcoin Strategy).

This, if approved, would likely lead to increased market liquidity and allow institutions to manage risk more efficiently. Nasdaq ISE stated that the Exchange believes an increase in position and exercise limits for IBIT options will lead to a more liquid market. This change is expected to improve market efficiency and create a more competitive market environment.

It has now taken a step, requesting the SEC approve, disapprove, or seek additional action in a 45-day period from its decision this past September. There, it allowed rule changes which gave Nasdaq ISE approval to list and trade BlackRock’s IBIT options. These are just some of the recent initiatives by Nasdaq. The exchange is exploring ways to help investors hedge against Bitcoin’s fluctuating price using regulatory-compliant channels.

The investment product digital assets have grown with an influx of $585 million in the first three days of 2025. Global accounts received an all-time-high inflow of $44.2 billion digital assets in 2024 with the main contributor of this growth attributed to Bitcoin ETFs, headed by BlackRock’s IBIT which recorded $37.31 billion inflows into its account.