Nasdaq Expands IBIT Bitcoin ETF Options Limits, Boosting Market Liquidity and Institutional Access

Source: DefiPlanet Original Title: Nasdaq Expands IBIT Bitcoin ETF Options Limits, Boosting Market Liquidity and Institutional Access Original Link: https://defi-planet.com/2025/11/nasdaq-expands-ibit-bitcoin-etf-options-limits-boosting-market-liquidity-and-institutional-access/

Quick Breakdown

• Nasdaq International Securities Exchange has proposed increasing the position limits for options on BlackRock’s iShares Bitcoin Trust (IBIT) ETF from 250,000 to 1 million contracts.
• This move responds to growing demand, enabling larger trades and more effective hedging strategies.
• Experts anticipate this will improve market liquidity, tighten spreads, and elevate IBIT to the status of an institutional-grade asset class alongside tech giants like Apple and Microsoft.

Nasdaq Seeks to Super-Size IBIT Bitcoin ETF Options

The Nasdaq International Securities Exchange recently filed a proposal with the U.S. Securities and Exchange Commission (SEC) to raise the position limits for options on BlackRock’s iShares Bitcoin Trust (IBIT) ETF to 1 million contracts. The current limit stands at 250,000 contracts, which Nasdaq argues restricts trading activity and investor strategies like hedging and income generation. The rising demand for IBIT options has prompted this request to accommodate more significant market participation without constraints.

According to market observers, the new proposal to raise position limits on IBIT options to 1 million contracts marks a significant milestone. IBIT is now the biggest bitcoin options market in the world by open interest, having just seen its limit raised to 250,000 contracts in July from the previous 25,000.

Institutional Impact and Market Evolution

Bitcoin analysts have noted that the change effectively puts BlackRock’s Bitcoin ETF in the same category as major tech names like Apple and Microsoft. It signals Bitcoin’s shift from a fringe experiment to a regulated, institutional-grade investment vehicle. Raising the limit also makes room for larger traders, helping deepen liquidity and enabling more advanced trading strategies. It reflects the broader maturation of crypto derivatives, which are evolving from niche products into core tools for risk management and price discovery in the Bitcoin ETF market. Altogether, this stronger framework invites more institutional capital and boosts market efficiency around IBIT, marking an important step in Bitcoin’s move into the financial mainstream.

Meanwhile, a concerning trend is emerging in how Bitcoin (BTC) is moving relative to the Nasdaq 100. The two are showing an uneven, one-sided correlation: Bitcoin tends to fall hard when the stock market pulls back, yet it hasn’t matched the gains seen during recent Wall Street rallies. This kind of negative skew, common in broader crypto bear markets, significantly heightens Bitcoin’s downside risk. Instead of behaving like an independent asset, it’s acting more like a levered bet on macro sentiment. This imbalance represents a structural weakness, leaving Bitcoin especially vulnerable if major equity indices start to slip.