- Nasdaq ISE proposes raising IBIT options limits to 250,000 contracts.
- The increase reflects IBIT’s $46.8 billion market cap and 39.4M daily trading volume.
Nasdaq ISE has filed a proposal with the SEC to raise the position and exercise limits for iShares Bitcoin Trust ETF (IBIT) options. The exchange seeks to increase these limits from 25,000 to 250,000 contracts. This move reflects the ETF’s growing market cap and rising trading volume.
Nasdaq ISE Proposes Boost In IBIT Options Limits To 250,000 Contracts
— The Wolf Of All Streets (@scottmelker) January 7, 2025
Nasdaq ISE has proposed increasing the position and exercise limits for options on the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts, pending SEC approval. This proposal aims to accommodate… pic.twitter.com/TfOn8x6cNA
The current limits are among the lowest in the options market. Nasdaq ISE argues that higher limits are essential to accommodate IBIT’s $46.8 billion market cap and daily trading volume of 39.4 million shares. The proposed limit would account for only 2.89% of IBIT’s outstanding shares.
Nasdaq ISE’s Conservative Approach
Nasdaq ISE emphasized that its proposal is conservative. A similar exercise limit in GLD accounts for 8.17% of its float, while SLV stands at 4.8%. In comparison, the Bitcoin Strategy ETF (BITO) represents 23.22% of its float. By contrast, IBIT’s proposed limit aligns with a more cautious market approach.
If approved, the amendment could boost market liquidity and benefit institutional investors. Increased limits would enhance risk management and foster a more competitive environment for IBIT options trading. Nasdaq ISE believes the change will better serve its growing customer base.
This filing follows the SEC’s approval of rule changes in September. These changes allowed Nasdaq ISE to list and trade options on BlackRock’s IBIT ETF. Nasdaq also plans to expand its digital asset offerings by introducing Bitcoin options trading. The exchange intends to leverage the CME CF Bitcoin Real-Time Index for these plans.
Nasdaq’s proposal comes amid rising interest in digital asset investments. Crypto ETFs, particularly Bitcoin-focused ones, saw record inflows in 2024. BlackRock’s IBIT led the way with $37.31 billion in inflows. Fidelity and ARK also contributed significantly with inflows of $11.84 billion and $2.49 billion, respectively.
In 2025, digital asset investment products have already seen $585 million in inflows. This reflects growing institutional interest and the integration of digital assets into traditional markets. The SEC now has 45 days to review, approve, or reject Nasdaq ISE’s proposal. Approval could mark a significant milestone in enhancing IBIT’s market accessibility and liquidity.
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