In a significant move for cryptocurrency market development, Nasdaq ISE has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to dramatically increase the position and exercise limits for options on BlackRock's spot Bitcoin ETF (IBIT). The exchange is requesting to raise the limit from 250,000 to 1 million contracts, representing a 400% increase, citing exceptional liquidity and soaring institutional demand as key drivers.
The proposal, announced on November 26, 2025, also includes removing limits on physically-settled FLEX options for IBIT, which would allow for more customized investment strategies and enhanced risk management. This change aims to provide greater flexibility for institutional investors, potentially attracting more capital into the Bitcoin ecosystem. Jeff Park, head of alpha strategies at Bitwise Asset Management, supported the move, stating that the previous cap was too low for current market conditions.
The SEC has opened the proposal for public comment, with a decision expected after review, which could take several weeks to months. If approved, this could set a precedent for other Bitcoin ETFs and exchanges, further integrating cryptocurrencies into mainstream financial markets.
