Stock exchange operator Nasdaq has formally requested that the U.S. Securities and Exchange Commission (SEC) remove key trading restrictions on options tied to spot Bitcoin and Ethereum exchange-traded funds (ETFs). The filing, dated January 21, specifically asks the regulator to eliminate the 25,000 position and exercise limit currently applied to options trading for these cryptocurrency funds.
If approved, the change would directly impact options on BlackRock’s iShares Bitcoin Trust ETF (IBIT) and its Ethereum ETF (ETHA). Over time, the higher limits would also apply to options on ETFs managed by Grayscale, Bitwise, Fidelity, ARK 21Shares, and VanEck. Under Nasdaq's proposal, these crypto ETFs would be subject to the standard position limits outlined in the Nasdaq Options Market rules, thereby synchronizing their regulatory treatment with other existing ETF options.
In its argument to the SEC, Nasdaq stated that the proposal promotes "just and equitable" principles of trade, prevents unfair discrimination, and supports a free and open market by ensuring consistent regulatory treatment. The exchange further contended that the change does not impose a significant burden on competition and protects investors, noting that similar updates are expected across other options exchanges. Nasdaq has also requested that the SEC waive the standard 30-day operative delay to make the rule change effective immediately upon approval.
The SEC is now seeking public comments on the proposal, with a decision expected by the end of February.
In a related development highlighting continued institutional demand, asset manager BlackRock has been actively accumulating Bitcoin and Ethereum. According to on-chain tracker Lookonchain, BlackRock purchased 9,619 Bitcoin (worth approximately $878 million) and 46,851 Ethereum (worth about $149 million) over three consecutive days in early January, for a combined total of roughly $1.03 billion. Separately, business intelligence firm Strategy acquired 22,305 BTC for about $2.13 billion between January 12 and 19, bringing its total holdings to 709,715 BTC, which represents roughly 3.38% of Bitcoin's total 21 million supply.
