Nasdaq has filed a proposed rule change with the U.S. Securities and Exchange Commission (SEC) to remove position and exercise limits on options linked to spot Bitcoin and Ethereum exchange-traded funds (ETFs).
The proposal aims to eliminate the current 25,000-contract limit applied to ETF options from issuers such as BlackRock, Fidelity, Grayscale, Bitwise, ARK 21Shares, and VanEck.
Nasdaq submitted the request in January. The SEC agreed to skip its usual 30-day waiting period, so the rule can start right away. However, the SEC can still stop or review the change within 60 days if it has any concerns.
Nasdaq said this change will treat crypto ETF options the same way as other commodity and ETF options traded on its exchange.
According to the exchange, this step ensures fair and consistent treatment across all eligible products without reducing investor protections. Options contracts allow traders to buy or sell assets at a fixed price before a certain date.
Exchanges usually set limits to control excessive speculation, reduce market manipulation risks, and prevent concentrated positions that could increase volatility. The SEC has opened a public comment period on the proposal, with a final decision expected by late February.
The rule change builds on Nasdaq’s earlier approval to list options on single-asset Bitcoin and Ethereum ETFs, though previous position limits remained in place.
Nasdaq is slowly increasing its role in the crypto market. In November, it suggested raising position limits on options linked to BlackRock’s iShares Bitcoin Trust from 250,000 contracts to 1 million.
Nasdaq said the move was needed because big investors are showing more interest and need better tools to manage risk.
At the same time, institutional demand for Bitcoin and Ethereum is growing. Large asset managers are buying more BTC and ETH, showing strong confidence in digital assets.
Nasdaq leaders have also shared plans to support tokenized stocks and work closely with CME Group to improve crypto market infrastructure and integration.
