TL;DR
- Nasdaq filed a rule change, effective Jan. 7, removing position limits on options tied to Bitcoin and Ethereum ETFs to mirror commodity ETF options.
- The SEC waived the 30-day review and can suspend the change within 60 days if concerns emerge, signaling confidence while keeping a backstop.
- The update lands with BTC around $88,861.56, about $1.78T market cap and 59.13% dominance, as institutional options interest in iShares Bitcoin Trust builds.
Nasdaq has filed a rule change with the U.S. Securities and Exchange Commission to eliminate position limits on options tied to spot Bitcoin and Ethereum ETFs, with the change effective Jan. 7. Nasdaq is effectively treating Bitcoin and Ethereum ETF options like mainstream commodity derivatives. The exchange said the update aligns digital-asset options with commodity ETF options, aiming to improve liquidity and market access without weakening investor protections. The filing notes the SEC can still suspend the change within 60 days if concerns emerge, keeping the rollout under active supervision, pending any further SEC action.
SEC fast-track shifts the operating model for ETF options
Nasdaq’s filing removes caps that previously constrained how large any single options holder could get in contracts linked to specific Bitcoin and Ethereum ETFs. The SEC’s decision to waive the usual 30-day review window signals confidence in the market’s stability and controls. Nasdaq framed the change as a consistency play, aligning these ETF options with established standards for commodity-based products. At the same time, regulators preserved a backstop: the SEC can temporarily suspend the rule change within 60 days if material concerns arise. For participants, that means more flexibility, but oversight remains in real time.
Even before the cap removal, institutional interest was building: the filing highlighted that BlackRock’s iShares Bitcoin Trust already carried significant options interest. Institutional hedging demand is already visible, and looser caps could deepen liquidity at key strikes. Nasdaq said the change may lift volumes and improve market depth for digital-asset derivatives. The same update landed as Bitcoin traded around $88,861.56 with a market capitalization above $1.78 trillion and market dominance near 59.13%. The snapshot also showed a 1.18% drop in 24 hours and a 20.28% decline over three months, per the CoinMarketCap snapshot cited there.
Nasdaq and the SEC positioned the move as a maturity marker, arguing that the market infrastructure can support digital-asset derivatives on terms comparable with traditional commodities. For brokers, issuers, and market makers, the takeaway is that scale will hinge on compliance, resilience, and transparency. Nasdaq suggested the removal could enable more innovative products built around digital-asset options, while keeping investor protection intact through surveillance and the SEC’s 60-day suspension authority. If liquidity expands as intended, tighter spreads and deeper books could follow. If concerns surface, the same mechanism allows regulators to pause and reassess quickly.
