Nasdaq Seeks SEC Approval to Remove Limits on Bitcoin ETF Options
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Coinmarketcap
- 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.
Analyst Views on BTC
Wall Street analysts forecast BTC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BTC is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
