Nasdaq Seeks SEC Approval to Remove Options Limits on Bitcoin and Ethereum ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Coinmarketcap
- Removal of Options Limits: Nasdaq has formally requested the SEC to eliminate the 25,000-contract cap on options tied to Bitcoin and Ethereum ETFs, a move that could significantly enhance institutional participation in the crypto derivatives market and improve liquidity.
- Evolving Market Conditions: Nasdaq argues that the existing limits were established when crypto ETFs were untested, but current trading volumes and assets under management now support larger options activities, thereby enhancing market efficiency.
- Institutional Demand Drives Change: The current position limits have constrained asset managers and hedge funds from deploying capital effectively, despite growing demand for regulated crypto exposure; if approved, this change would allow larger options positions reflecting the breadth of institutional interest.
- Regulatory Challenge: The proposal places the SEC in a pivotal decision-making role, determining whether crypto ETF options should continue facing bespoke restrictions or be fully integrated into existing derivatives regulation, which could deepen the derivatives layer in U.S. markets and anchor institutional capital over longer cycles.
Analyst Views on ETH
Wall Street analysts forecast ETH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ETH 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.
