Nasdaq is urging the U.S. Securities and Exchange Commission to loosen restrictions on options trading for spot Bitcoin and Ethereum exchange-traded funds.
The exchange filed its request on Jan. 21, asking regulators to remove the current 25,000 position and exercise limits on options tied to certain bitcoin and ether funds.
What Nasdaq is asking for
If approved, the change would apply to BlackRock’s iShares Bitcoin Trust (IBIT) and its Ethereum fund (ETHA).
Nasdaq said options on ETFs from issuers including Grayscale, Bitwise, Fidelity, ARK 21Shares, and VanEck could later be covered by higher limits as well.
Under the proposal, the bitcoin and ether ETF options would be brought under the same position-limit framework used for other ETF options listed on Nasdaq.
Nasdaq argued that aligning these products with existing ETF options rules would create fairer and more consistent treatment across funds.
Timeline and process
Nasdaq also asked the SEC to waive the standard 30-day delay and make the rule change effective immediately.
The SEC is currently collecting public comments and a final decision is expected by the end of February.
Institutional buying continues
The filing comes as large institutions continue adding bitcoin.
BlackRock recently bought 9,619 BTC valued at about $878 million and 46,851 ETH worth about $149 million over three consecutive days, according to Lookonchain.
Strategy also disclosed it purchased 22,305 BTC between Jan. 12 and Jan. 19 for roughly $2.13 billion.
After that buy, Strategy’s total holdings rose to 709,715 BTC, according to the company.
