Nasdaq is seeking regulatory approval to raise the trading limits for options tied to BlackRock’s iShares Bitcoin Trust (IBIT), signaling a major step toward deeper institutional adoption of Bitcoin derivatives.
Key Takeaways
- Nasdaq ISE filed a proposal with the SEC to raise position and exercise limits on IBIT options from 250,000 to one million contracts.
- The move reflects the ETF’s rapid growth and aligns it with top-tier funds like iShares MSCI Emerging Markets and SPDR Gold Trust.
- BlackRock’s IBIT has become the largest Bitcoin options market by open interest, overtaking global platforms like Deribit.
- Experts see the increased cap as a green light for larger institutional strategies and improved market depth.
What Happened?
Nasdaq’s International Securities Exchange (ISE) submitted a formal request to the Securities and Exchange Commission (SEC) to raise the current cap on options contracts for the iShares Bitcoin Trust ETF. The exchange cited surging trading volumes and IBIT’s growing institutional demand as key drivers for the change.
At last, IBIT options is finally getting the treatment it deserves—
— Jeff Park (@dgt10011) November 26, 2025
Nasdaq just filed to increase options limit to 1 MILLION (from 25k a year ago)
Institutional vol is finally here
Happy Thanksgiving https://t.co/vqH75rUTSf pic.twitter.com/MpCHxHMW8q
Nasdaq Proposes Bigger Limits for Growing Bitcoin ETF
In its November filing, Nasdaq ISE requested that both position and exercise limits for IBIT options be increased to one million contracts, up from the current 250,000, which is the maximum allowed under the exchange’s existing structure. The proposed adjustment would place IBIT alongside ETFs like iShares MSCI Emerging Markets (EEM) and iShares China Large-Cap ETF (FXI), which already support such high trading limits.
The ISE explained that IBIT’s market size and daily trading volume now justify inclusion in the top tier. The fund has quickly become one of the most actively traded exchange-traded products tied to a single asset, and its increasing popularity with institutional investors underscores the need for greater trading flexibility.
IBIT’s Institutional Role Expands
BlackRock’s iShares Bitcoin Trust has rapidly risen to prominence, becoming the largest market for Bitcoin options open interest, even surpassing Deribit, the long-standing leader in crypto derivatives. This development signals a major shift in where institutional investors are placing their bets in the evolving crypto space.
In support of the proposal, Nasdaq ISE emphasized that even if one million contracts were exercised simultaneously, the impact on the broader Bitcoin market would be minimal. The exchange estimated this would account for just 0.284 percent of the total Bitcoin supply, or 7.5 percent of IBIT’s outstanding shares, highlighting the market’s depth and resilience.
Removal of Limits for FLEX Options
In addition to raising standard trading caps, Nasdaq is also seeking to eliminate position and exercise limits for physically settled FLEX IBIT options. These customized contracts are primarily used by large funds for tailored hedging strategies and are already limit-free for certain commodity ETFs like SPDR Gold Trust (GLD). Nasdaq’s goal is to offer similar flexibility for Bitcoin, reflecting its growing maturity as a financial asset.
Industry Support for the Move
The proposal has drawn positive reactions from crypto-focused financial firms. Jeff Park, head of alpha strategies at Bitwise Asset Management, remarked, “The previous 250,000-contract cap was too low,” noting that the proposed increase better accommodates demand. Bloomberg ETF analyst Eric Balchunas also highlighted BlackRock’s leadership in driving innovation in the Bitcoin ETF space.
Bitcoin Derivatives Go Mainstream
The filing demonstrates Nasdaq’s broader recognition of Bitcoin as a mainstream investment vehicle, grouping IBIT with long-established equity benchmarks and high-liquidity ETFs. It also reflects growing institutional interest in Bitcoin derivatives, especially as these tools become vital for hedging, income generation, and speculative strategies.
By expanding access and lifting constraints, Nasdaq is making it easier for institutional players to engage with Bitcoin markets in a regulated environment.
CoinLaw’s Takeaway
I found this move by Nasdaq to be a clear signal that Bitcoin is no longer on the sidelines of finance. When the biggest players like BlackRock and Nasdaq start treating Bitcoin the same way they treat global equity ETFs and commodities like gold, it tells you just how far crypto has come. In my experience watching institutional trends, such a jump in position limits often precedes surges in market participation. If this gets approved, expect more hedge funds and big money to lean into IBIT for exposure and strategic plays. This is a big moment for Bitcoin derivatives.
