The U.S. Securities and Exchange Commission (SEC) officially approved the Nasdaq ISE proposal on April 30, significantly increasing the position and exercise rights limit for the BlackRock iShares Bitcoin Trust ETF (IBIT) options from 250k shares to 1 million shares, a fourfold increase.

The SEC believes that IBIT has sufficient liquidity and market size, and that raising the limit will not increase manipulation risks, but rather align it with the standards of traditional large ETFs (such as EEM, FXI). This adjustment removes the previous cap faced by institutional large funds, allowing them to establish large positions more flexibly, implement efficient hedging strategies (such as covered calls and protective puts), and design structured products, which is expected to further enhance market depth and attract more institutional funds into the Bitcoin market.

However, larger position sizes may also amplify the price feedback effects of derivatives on the spot market, potentially increasing short-term volatility risks. Overall, this marks a further step toward the maturity of the Bitcoin ETF options market and the integration of crypto assets with the traditional financial system.