Nasdaq ISE Proposes Increasing Position and Exercise Limits for iShares Bitcoin Trust ETF (IBIT) Options

The Nasdaq ISE, an options exchange owned by Nasdaq, has filed a proposed rule change with the U.S. Securities and Exchange Commission to increase the position and exercise limits for options of the iShares Bitcoin Trust ETF (IBIT) from 25,000 contracts to 250,000.

The change comes amid growing market cap and trading volume for the ETF, which are currently among the lowest in options trading. Nasdaq ISE justifies the increase by highlighting the ETF’s large market presence and the need to adjust the limits accordingly.

If approved, the increase in contract limits would enhance market liquidity and allow institutions to more efficiently manage risk. According to Nasdaq ISE, the exchange believes an increase in position and exercise limits for IBIT options will lead to a more liquid market, which is expected to improve market efficiency and create a more competitive market environment.

The U.S. Securities and Exchange Commission is now set to review the proposed rule change and may approve, disapprove, or seek additional action within a 45-day period from its decision this past September, which allowed rule changes that gave Nasdaq ISE approval to list and trade BlackRock's IBIT options.

This marks the latest initiative by Nasdaq to facilitate institutional participation in the digital asset market. The exchange has previously introduced several initiatives, including the launch of Bitcoin Mini options and the listing of several crypto-related exchange-traded funds (ETFs).

Meanwhile, investment product digital assets continue to see strong inflows, with an influx of $585 million in the first three days of 2025. Global accounts received an all-time-high inflow of $44.2 billion digital assets in 2024, with the main contributor to this growth being Bitcoin ETFs, led by BlackRock's IBIT, which recorded $37.31 billion inflows into its account.