Nasdaq ISE has filed a request with the SEC to significantly raise the position and exercise limits for options on BlackRock’s
iShares Bitcoin Trust
(IBIT), proposing an increase from 250,000 to one million contracts. Bloomberg’s Eric Balchunas characterizes this as a major milestone for institutional involvement. This change would put
IBIT
on par with leading equity benchmarks such as the iShares MSCI Emerging Markets (EEM), and would place it in the same liquidity category as high-profile stocks like Apple (AAPL) and Microsoft (MSFT)
as outlined in Nasdaq’s submission
. Analyst Adam Livingston described the move as “highly bullish,” highlighting that the new limits
create a 40-fold expansion in derivatives trading capacity
for
Bitcoin
, marking a shift from ETF adoption to a more robust derivatives market.
This proposal comes as IBIT experiences rapid expansion, now
managing $65.34 billion in assets
and accounting for 69% of all Bitcoin ETF trading activity. Nasdaq pointed to IBIT’s surging options volume and its market cap, now above $157 billion, as reasons for the proposed increase. The exchange
stated that even if the full one million contract limit were exercised
it would only account for 7.5% of IBIT’s available shares and just 0.284% of the total Bitcoin supply, suggesting little risk of market instability.
Interest from institutional investors in Bitcoin-related products continues to grow. Texas recently invested $5 million in IBIT as part of its $10 million Strategic Bitcoin Reserve program. The state intends to eventually hold Bitcoin directly, reflecting a wider movement among governments and businesses to incorporate digital assets into their financial planning
according to Texas officials
. Abu Dhabi’s sovereign wealth funds also tripled their IBIT investments in the third quarter of 2025, highlighting increasing global institutional trust
as reported by market analysts
.
BlackRock’s IBIT has established itself as a primary vehicle for traditional investors seeking Bitcoin exposure, providing institutional-level custody through Coinbase and removing the technical barriers of direct crypto ownership. With an average daily trading volume of 45 million shares, the ETF offers strong liquidity and closely mirrors Bitcoin’s price movements. This has attracted a base of older, long-term investors, who now control over 95% of the ETF’s assets, helping to stabilize the market during downturns
as detailed in market reports
.
Nasdaq’s proposal comes as Bitcoin ETFs see renewed inflows, with $238.4 million in net investments recorded on November 21, ending a three-week period of outflows. Despite Bitcoin’s price dropping 36% from its October high, institutional buyers remain active, with significant accumulation from Abu Dhabi and Asian investors.
Analysts suggest that a potential Federal Reserve rate cut
in December could further increase ETF inflows, potentially driving Bitcoin’s price toward $100,000 by early 2026.
Raising the IBIT options cap is viewed as a fundamental shift for Bitcoin, allowing for larger hedging strategies and helping to dampen volatility.
Livingston pointed out that Bitcoin’s most dramatic price surges
have historically coincided with growth in the derivatives market, indicating this move could spark a new bull run. At the same time, Nasdaq’s decision to treat IBIT like other top-tier assets highlights Bitcoin’s evolution into a mainstream institutional asset, with BlackRock’s dominance in ETF trading volume
strengthening its position as a key entry point
for traditional investors.
