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Bitcoin Updates: Nasdaq Brings Bitcoin Derivatives into the Mainstream by Raising Trading Limits
Bitget-RWA2025/11/27 04:52
By: Bitget-RWA
- Nasdaq ISE proposes expanding IBIT options limits to 1M contracts, aligning with major ETFs to boost Bitcoin derivatives liquidity. - IBIT's 44.6M daily volume and Deribit-surpassing open interest justify the increase, addressing institutional demand for hedging tools. - Experts praise the move for enabling structured products and capital allocation, with SEC seeking public comments until December 17, 2025. - The change signals Bitcoin's integration into mainstream finance, potentially enhancing market e
Nasdaq’s International Securities Exchange (ISE) has put forward a proposal to raise the position and exercise limits for options on BlackRock’s
iShares Bitcoin Trust
(IBIT) from the current 250,000 contracts up to 1,000,000 contracts. This change is expected to greatly boost liquidity in the Bitcoin derivatives sector
. The proposal, now before the U.S. Securities and Exchange Commission (SEC), would bring IBIT
in line with leading equity ETFs such as the SPDR S&P 500 ETF and iShares MSCI Emerging Markets (EEM), highlighting its swift rise as a key player in institutional trading
. ISE pointed to strong demand, noting IBIT’s average daily trading volume hit 44.6 million shares as of September 2025 and open interest has overtaken Deribit
, the top crypto derivatives exchange. The exchange contends that the current 250,000-contract ceiling limits institutional investors’ ability to hedge and generate income
as stated in regulatory filings
. Even if the new cap is fully utilized, it would represent only 0.284% of all Bitcoin
in circulation, a proportion ISE believes is too small to impact the broader market
. The proposal also calls for eliminating position limits on physically settled FLEX IBIT options, matching the approach used for commodity ETFs like SPDR Gold Trust (GLD), to allow large funds to customize their hedging strategies based on market assessments
. 
The initiative has received positive feedback from industry professionals. Jeff Park at Bitwise Asset Management remarked that the previous limit was "insufficient" for the rising demand,
while Eric Balchunas of Bloomberg emphasized BlackRock’s pioneering role in the Bitcoin ETF space
. Lai Yuen from Fisher8 Capital commented that the adjustment would support the creation of more structured investment products
, making it easier to allocate capital to Bitcoin ETFs. The SEC is currently inviting public feedback on the proposal until December 17, 2025, with
approval anticipated if IBIT’s trading activity and liquidity remain in line with regulatory expectations
. Analysts such as Vincent Liu from Kronos Research predict that, if adopted, the change will lead to narrower spreads and greater market efficiency, marking a transition for crypto derivatives from a niche product to an essential financial instrument as indicated by market research
. This move highlights Bitcoin’s growing role in mainstream finance, with
Nasdaq
now treating IBIT on par with established ETFs and commodities. As more institutions get involved, the higher limits could drive further adoption, solidifying Bitcoin derivatives as vital tools for risk management and strategic investment. Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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