SEC Allows Nasdaq to Remove Position Limits on Crypto ETF Options

Overview

• The change lifts the 25,000‑contract cap on options tied to spot Bitcoin and Ether ETFs listed on Nasdaq.
• Affected options include funds from BlackRock, Fidelity, Grayscale, Bitwise, ARK/21Shares, and VanEck.
• The SEC opened a public comment period and expects a final determination by late February unless it suspends the rule.
• Nasdaq says parity with other qualifying options will improve hedging and liquidity without undermining investor safeguards.
• The filing, submitted January 7, follows Nasdaq's late‑2025 push to expand crypto derivatives and comes as large institutions report fresh Bitcoin and Ether purchases.