Nasdaq Proposes Increased Cap for BlackRock Bitcoin ETF Options

Nasdaq ISE proposed increasing BlackRock’s Bitcoin ETF options cap from 250,000 to 1 million contracts, responding to surging demand, as reported on November 27, 2025.

This expansion signifies Bitcoin’s growing stature as a core asset, potentially enhancing institutional engagement and market liquidity, amid significant hedging capacity gains.

Nasdaq ISE Proposes 4x Increase in Bitcoin ETF Options Cap

The Nasdaq ISE has suggested increasing the options open interest cap for BlackRock’s Bitcoin spot ETF, IBIT, from 250,000 to 1 million contracts. This adjustment follows an earlier increase from 25,000 contracts in July 2025. The proposed change aims to accommodate growing institutional demand for IBIT options.

If approved by the SEC, the new cap could dramatically expand hedging capabilities from $125 million to over $1 billion. The rise in options limits demonstrates Bitcoin’s recognition as a “core macro asset,” comparable to ETFs holding global systemic assets.

Prominent figures have weighed in on this proposal. Arthur Hayes, former CEO of BitMEX, asserted the initiative underscores Bitcoin’s status as a macro asset. Raoul Pal, CEO of Real Vision, highlighted how the limits empower institutional risk management and present fresh investment opportunities.

Potential Impact on Bitcoin Market and Regulatory Outlook

Did you know? The proposed increase aligns with past precedent, such as the iShares MSCI Emerging Markets ETF, whose limit rose to 1 million contracts, setting the stage for Bitcoin’s elevated macro asset positioning and hedging potential.

As of November 26, 2025, Bitcoin (BTC) was priced at $87,609.66 with a market cap of $1.75 trillion, dominantly holding 58.01% of the market. Despite recent declines, Bitcoin showed a modest 0.73% increase over 24 hours, as reported by CoinMarketCap.

The Coincu research team predicts that increased institutional activity following the cap adjustment could bolster crypto market liquidity and stability over time. Elevated hedging capacity might encourage further regulatory advancements in Bitcoin trading and investment frameworks.

“The Exchange has observed an ongoing increase in demand in options on IBIT in 2025. The Exchange believes the current position limit and exercise limit are constraining the ability of market participants to fully utilize the IBIT options market, particularly for large institutional investors.” — Federal Register, November 26, 2025