NYSE Removes 25,000 Contract Cap on Crypto ETF Options
The SEC fast-tracked rule changes filed by NYSE Arca and NYSE American to eliminate the 25,000-contract position limit on Bitcoin and Ether ETF options, effective immediately.
Key Takeaway
Crypto ETF options now match commodity ETF rules, clearing the path for bigger institutional trades.
The Securities and Exchange Commission waived its standard 30-day waiting period to fast-track rule changes filed by NYSE Arca and NYSE American, removing the 25,000-contract position limit on Bitcoin and Ether ETF options.
NYSE filed three rule changes in the Federal Register on March 10, covering 11 crypto ETFs including BlackRock's iShares Bitcoin Trust, Fidelity's Wise Origin Bitcoin Fund, and ARK 21Shares' Bitcoin ETF. The exchanges also added FLEX options trading, which allows institutional traders to customize strike prices, expiration dates, and exercise styles.
The original cap was imposed in November 2024 when crypto ETF options first started trading, meant to prevent market manipulation and volatility. Now crypto options get the same treatment as other commodity ETF options, giving institutions more flexibility to enter and exit large positions without hitting regulatory walls.
Nasdaq removed the identical 25,000-contract cap on Bitcoin and Ethereum ETF options in February 2025. Grayscale's Bitcoin Trust ETF got its 25,000-contract limit removed in late July when the SEC approved an earlier exchange filing, with Nasdaq International Securities Exchange filing separately on February 27 seeking to raise position limits specifically for BlackRock's IBIT.
This article was written based on reporting from Cointelegraph.
