Nasdaq Aims to Increase Trading Limits on BlackRock’s IBIT Options Fourfold
Nasdaq's Proposal: Nasdaq is seeking to increase the options position and exercise limits for BlackRock’s iShares Bitcoin Trust (IBIT) from 250,000 to one million contracts, aiming to enhance trading capacity for institutional investors.
Institutional Demand: The proposed increase is a response to growing institutional interest in Bitcoin derivatives, positioning IBIT alongside major equity index ETFs to facilitate complex trading strategies.
Market Growth: IBIT has rapidly gained dominance in the U.S. Bitcoin options market, surpassing traditional crypto venues in open interest, indicating a shift towards regulated markets for Bitcoin derivatives.
Regulatory Process: The SEC has opened a public comment period until December 17, which will influence whether IBIT will be classified among top-tier ETF derivatives, further integrating Bitcoin into mainstream finance.
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