Nasdaq Seeks SEC Approval to Remove Limits on Bitcoin ETF Options
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: 2h ago- Rule Change Proposal: Nasdaq filed with the SEC on January 7 to eliminate the 25,000-contract limit on Bitcoin and Ether ETF options, which will align digital asset options with other commodity options, enhancing market liquidity.
- Immediate Effect: The SEC waived the standard 30-day waiting period, allowing the rule to take effect immediately, although it retains the right to suspend it within 60 days, reflecting a cautious regulatory stance on crypto products.
- Market Strategy Shift: This change is part of Nasdaq's broader strategy to expand its footprint in crypto products, having previously sought to raise position limits on BlackRock's iShares Bitcoin Trust options from 250,000 to 1 million contracts, indicating strong demand for flexible hedging tools from institutional investors.
- Future Regulatory Review: Although the rule is effective, the SEC is conducting a public comment period and is expected to issue a final determination by late February, which could impact liquidity and pricing efficiency for market participants, especially during periods of price volatility.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
