Nasdaq Seeks SEC Approval to Lift Bitcoin & Ether ETF Options Position Caps

• Nasdaq filed with the SEC to remove 25,000-contract position/exercise limits on Bitcoin & Ether ETF options. 
• The filing covers options on Nasdaq-listed ETFs from issuers including BlackRock, Fidelity, Bitwise, Grayscale, ARK/21Shares and VanEck.

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Nasdaq has filed proposed rule changes with the U.S. Securities and Exchange Commission to remove position and exercise limits for options tied to several spot Bitcoin and spot Ether exchange-traded funds. The filings cover products listed on Nasdaq ISE and Nasdaq PHLX and address limits that are set at 25,000 contracts for certain crypto ETF options.

In the SEC notices, the exchanges said the proposal relates to options overlying exchange-traded fund shares that track Bitcoin or Ethereum. The list includes iShares Bitcoin Trust ETF, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust BTC, and Bitwise Bitcoin ETF. It also includes Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, and VanEck Bitcoin ETF.

For Ether-linked products, the notices reference iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust. The exchanges propose removing the 25,000-contract position and exercise cap for several of these ETFs, where that specific limit is currently listed in their options rules.

The SEC published the notice to solicit public comments and also waived the standard 30-day operative delay, allowing the rule change to become effective immediately. Even so, the agency retains authority to suspend the change within 60 days if it determines that further review is needed.

Rule Filing Adds to Nasdaq’s Recent Crypto Derivatives Push

In the rule filing, Nasdaq compared crypto ETF options with options tied to commodity-based funds that trade under different position-limit treatment, pointing to liquidity and transparency factors used in existing options frameworks.

 The submission also references earlier regulatory steps that enabled options trading on single-asset crypto ETFs while leaving contract caps in place.

A final SEC determination is expected by late February, unless the agency suspends the change for additional review during the statutory window. During the comment period, market participants may submit feedback on contract-limit removal, investor protection considerations, and surveillance standards tied to the listed products.

The filing follows other Nasdaq-related actions tied to crypto derivatives. In late 2025, CNF reported that Nasdaq ISE filed with the SEC to raise the position limits for options tied to BlackRock’s iShares Bitcoin Trust (IBIT) from 250,000 contracts to one million. The exchange also asked the SEC to reclassify IBIT options into the same derivatives tier as major equity indexes and large-cap stocks. 

Meanwhile, the ETF market has continued to grow, as issuers expand their crypto-linked offerings through SEC filings. Recently, CNF covered that Grayscale submitted an S-1 to convert the Grayscale Near Trust into a spot ETF that could list on NYSE Arca under the ticker GSNR.

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