🚨 Breaking: Nasdaq Moves to Lift Options Limits on Bitcoin & Ethereum ETFs

Nasdaq has filed with the U.S. Securities and Exchange Commission seeking approval to remove long standing options trading restrictions on multiple spot Bitcoin and Ethereum ETFs.

The proposal covers major products including BlackRock’s Bitcoin ETF IBIT and Ethereum ETF ETHA, along with ETFs from Grayscale, Bitwise, Fidelity, ARK 21Shares, and VanEck. If approved, the current 25,000 position and exercise limits on options will be removed, bringing these crypto ETF options under Nasdaq’s standard options framework, similar to traditional ETF products.

Nasdaq stated the change promotes fair and equitable trading, avoids regulatory discrimination, supports market efficiency, and does not create competitive risks. The exchange has requested the SEC to waive the usual 30 day waiting period and allow the rule change to take effect immediately. The SEC is now inviting public comments, with a final decision expected by the end of February.

Despite the regulatory push, derivatives data shows mixed sentiment. Options linked to BlackRock iShares Bitcoin Trust (IBIT) currently rank 11th among U.S. assets by open interest, at roughly 5.3 million contracts, trailing gold and silver ETFs amid a broader risk off mood.

Spot Bitcoin ETFs have seen heavy outflows totaling $1.58 billion over the past three days, led by BlackRock and Fidelity. Meanwhile, $BTC trades near $90,000, up around 1 percent in the last 24 hours, while $ETH holds near $3,000 after a sharp weekly correction.

📌 Why it matters: Removing options limits could significantly boost liquidity, hedging activity, and institutional participation in crypto ETFs, marking another step toward deeper integration with traditional markets.