Nasdaq wants to remove position limits on Bitcoin and Ether ETF options

Source: CoinTribune Original Title: Nasdaq wants to remove position limits on Bitcoin and Ether ETF options Original Link: https://www.cointribune.com/en/nasdaq-wants-to-remove-position-limits-on-bitcoin-and-ether-etf-options/

Summary

Nasdaq asked the SEC to remove the 25,000 contract cap on Bitcoin and Ether ETF options. The measure aims to align these crypto options with rules for "commodities" ETFs and improve coverage for major players. The SEC made the change effective immediately, with a suspension possibility within 60 days.

Key Details

Nasdaq filed a rule change with the SEC to remove the 25,000 contract cap (position and exercise) that applied to several options of Bitcoin and Ether ETFs listed on its exchange.

This removal covers several ETFs, notably those linked to major asset managers including BlackRock, Fidelity, and VanEck. This is not a micro-optimization for a single fund, but an upgrade of the entire "playing field." The SEC removes the 30-day waiting period; this is an immediate measure with suspension possible within 60 days.

An option grants the right, without obligation, to buy or sell an asset at a set price. Caps exist on Bitcoin and ETH to limit overly concentrated positions, excessive speculation, and manipulation risks. Nasdaq believes these limits imposed unequal treatment compared to established commodity ETFs.

In practice, removing this cap can make options more useful for those managing risk at scale: institutional players, market makers, multi-asset managers. Less cap often means more flexibility to cover Bitcoin ETF exposure without patching fragmented positions.

However, there's a mirror effect to consider: more capacity can also attract more directional activity. The issue is not "more speculation = necessarily better," but rather: the options market becomes more mature, thus more liquid... and potentially more nervous on stress days.

The Broader Signal: Nasdaq Accelerates Its Crypto Strategy

In November 2025, Nasdaq ISE also pushed a case to significantly raise limits on options linked to major Bitcoin Trust products, targeting an increase up to 1 million contracts. This is not the move of a hesitant player—it is the language of a stock exchange seeing structural demand.

This filing fits a clear trajectory. At the end of 2025, Nasdaq had already obtained the framework allowing the listing of options on crypto ETFs by treating them as trusts backed by commodities, while leaving certain limits in place. Now, the exchange moves to the next level: harmonizing rules, and in the same logic, Nasdaq also aligns crypto indices to strengthen overall coherence.

Behind the jargon lies a simple idea: integrate crypto into classic derivatives without exceptional treatment.