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Nasdaq ISE Seeks 1 Million-Contract Cap for BlackRock Bitcoin ETF Options as SEC Opens Review

Regulators are taking public comment after Nasdaq argued IBIT’s size now warrants top‑tier derivatives limits.

IBIT Bitcoin
Nasdaq seeks to quadruple ishares bitcoin trust options limits for bigger institutional hedging
Nasdaq ISE proposes to raise BlackRock IBIT options trading limits from 250,000 to 1 million
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Overview

  • Nasdaq ISE filed to lift position and exercise limits on options tied to BlackRock’s iShares Bitcoin Trust from 250,000 to 1,000,000 contracts per side, with the proposal published in the Federal Register on Nov. 26.
  • The SEC has opened a public comment period through Dec. 17, with final approval pending.
  • The exchange also asked to remove position and exercise limits for physically settled FLEX IBIT options, aligning treatment with commodity ETFs such as SPDR Gold Trust.
  • Nasdaq’s filing says a fully exercised 1 million‑contract position would equal about 7.5% of IBIT’s float and roughly 0.284% of all bitcoin, which it argues limits market‑disruption risk.
  • IBIT options open interest has grown rapidly in 2025 and is now reported by analysts to be the largest bitcoin options venue, and the higher limits are expected to enable larger institutional hedges and structured‑product issuance if approved.