Bitaigen Research 
U.S. Securities and Exchange Commission (SEC) recently received a rule‑amendment filing from Nasdaq that seeks to eliminate the current caps on the number of contracts for spot‑Bitcoin (BTC) and spot‑Ethereum (ETH) ETF options. The filing states that the change is intended to address uneven treatment in the derivatives market and to align the regulatory framework for crypto‑asset options with that of other commodity‑type funds.
Since the end of 2025, when Nasdaq approved the listing of single‑asset crypto‑ETF options in a commodity‑trust structure, the associated position‑size and exercise‑right limits have remained tied to the original caps. The present amendment request would remove the 25,000‑contract ceiling that applies to a range of Bitcoin‑linked options, thereby permitting more flexible hedging and trading strategies. The document lists the ETFs currently listed on Nasdaq that would be affected, including products from BlackRock, Fidelity, Bitwise, Grayscale, ARK/21Shares, VanEck and others.
The SEC has waived the usual 30‑day waiting period for this rule change, allowing it to take effect on the day of submission, while reserving the right to suspend the amendment within 60 days if it deems such action necessary. A public comment period has been opened, and the commission expects to issue a final decision by the end of February, unless additional issues arise that require further evaluation during the review.
Options are, by definition, financial contracts that give the holder the right (but not the obligation) to buy or sell an underlying asset at a predetermined price before a specified expiration date. Regulators typically impose limits on the aggregate size of option positions to curb excessive speculation, prevent market manipulation, and reduce the risk that concentrated holdings by a single entity could amplify volatility and threaten market stability. Crypto gains may be taxable in your local jurisdiction, so consult a tax professional.
SEC notice on the rule change that would remove certain restrictions on crypto assets. Source: U.S. Securities and Exchange Commission
In its filing, Nasdaq emphasizes that the adjustment will allow digital‑asset options to be “traded on an equal footing with all other options that meet listing standards,” without diminishing investor protections. The exchange argues that the existing caps have constrained market participants’ hedging needs and have resulted in unfair treatment of digital‑asset options relative to traditional commodity options.
We have compiled Nasdaq’s latest rule‑amendment request, dissecting the regulatory rationale and market implications of lifting the position limits on Bitcoin and Ethereum ETF options, to help investors understand potential shifts in trading strategies. Follow‑up details will be closely watched, including the SEC’s review process and the market’s response in terms of option liquidity.
Nasdaq Expands Its Role in the Crypto Market
In recent years Nasdaq has accelerated its footprint in the cryptocurrency space. In November of last year, the exchange submitted a proposal to the SEC to raise the limit on options tied to BlackRock’s iShares Bitcoin Trust (IBIT) from the original 250,000 contracts to 1 million, citing sustained market demand that the previous cap could no longer accommodate hedging and other trading strategies.
That same month, Matt Savaresse, Nasdaq’s head of digital‑asset strategy, told CNBC that the exchange is prioritizing the tokenization of equities and securing regulatory approval, and that it will move swiftly through the SEC’s review once public comments and regulator feedback are incorporated.
*Matt Savaresse speaking to CNBC in November. Source: CNBC*
Entering 2024, Nasdaq partnered with the Chicago Mercantile Exchange (CME) to standardize a cryptocurrency benchmark index and rebrand the existing Nasdaq Crypto Index as the Nasdaq‑CME Crypto Index. This multi‑asset index tracks major digital assets including Bitcoin, Ethereum, Ripple (XRP), Solana (SOL), Chainlink (LINK), Cardano (ADA) and Avalanche (AVAX).
As a leading U.S. securities‑exchange operator, Nasdaq not only provides electronic trading platforms for equities, derivatives and ETFs, but also serves as a key listing venue for technology and growth‑oriented companies. The current application to remove the position caps on Bitcoin and Ethereum ETF options underscores an even deeper integration of digital assets into Nasdaq’s broader ecosystem.
For further details on Nasdaq’s rule amendment, stay tuned to Bitaigen’s ongoing coverage.
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⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.
