Nasdaq is asking the SEC to remove the 25,000-position cap and exercise limits on options for crypto ETFs, in order to create a fairer trading environment.
Nasdaq filed a request with the U.S. Securities and Exchange Commission (SEC) on January 21, asking the agency to lift current restrictions on options trading for Bitcoin and Ethereum Exchange Traded Fund (ETFs).
This proposal aims to remove the 25,000-position cap and exercise limits currently applied to options on several crypto asset funds, including BlackRock's iShares Bitcoin Trust ETF (IBIT) and the Ethereum ETF ETHA.
If approved, this change would also extend to funds managed by Grayscale, Bitwise, Fidelity, ARK21Shares, and VanEck, bringing them on par with traditional ETF options.
Nasdaq argues that lifting the restrictions would create a fairer trading environment and end the unequal treatment between different fund types. The exchange claims that, under the proposal, all crypto asset ETFs would be subject to the same position limits currently applied to other funds traded through Nasdaq's options market.
This approach is expected to protect investors without harming market competitiveness, while helping to maintain an open and transparent trading environment.
Nasdaq also urged the SEC to bypass the usual 30-day waiting period and implement the new rules immediately, emphasizing the urgency of updating the regulations.
Institutional Capital continues to flow into Bitcoin.
The SEC is currently gathering public feedback and is expected to make a final decision by the end of February. Similar updates are also expected to appear at other options exchanges, creating a wave of comprehensive regulatory changes for the crypto ETF options market.
If approved, this move could significantly increase the liquidation and volume of Bitcoin and Ethereum-related Derivative , and expand investment opportunities for professional and institutional traders.
While the XEM process was underway, financial institutions continued to increase their Bitcoin holdings. BlackRock reportedly took advantage of the price correction to buy more of the digital asset. Earlier this month, the asset management giant purchased 9,619 Bitcoin worth approximately $878 million and 46,851 Ethereum worth about $149 million over three consecutive days. According to Lookonchain, a blockchain activity tracker, the total value of these purchases combined reached approximately $1.03 billion.
Other companies are also actively adding Bitcoin to their balance sheets. Strategy, a business analytics software company, purchased 22,305 BTC between January 12 and 19 at a total cost of approximately $2.13 billion. Following this transaction, Strategy now holds a total of 709,715 BTC, solidifying its position as one of the world's largest Bitcoin holders.
