Bitcoin Updates Today: Bitcoin Derivatives Aim for Greater Independence as Nasdaq Pursues $1 Million Growth

Nasdaq Seeks to Expand IBIT Options Trading Limits

Nasdaq has proposed a major increase in trading limits for options tied to BlackRock’s iShares Bitcoin Trust (IBIT), a move that could significantly advance institutional participation in Bitcoin derivatives. The International Securities Exchange (ISE), operated by Nasdaq, has formally asked the U.S. Securities and Exchange Commission (SEC) to boost the position and exercise limits for IBIT options from 250,000 to 1,000,000 contracts, according to a recent filing.

Aligning with Leading ETFs and Equities

This request, submitted on November 21, 2025, would bring IBIT’s options in line with those of major stocks and ETFs such as Apple and the SPDR S&P 500 ETF. The move reflects IBIT’s rapid rise as a key player in the crypto derivatives landscape, as noted by financial industry observers.

Market Demand and Institutional Growth

Since January 2025, the 250,000-contract ceiling has been seen as a constraint by many in the market. Jeff Park from Bitwise Asset Management remarked that the previous cap was insufficient for the growing appetite among institutional investors. Bloomberg’s Eric Balchunas pointed out that IBIT has already surpassed global competitors like Deribit to become the largest Bitcoin options market by open interest. Nasdaq’s own analysis indicates that even at the proposed higher limit, the exposure would represent only 0.284% of the total Bitcoin supply, suggesting minimal systemic risk while allowing for more robust trading strategies.

Changes to FLEX Options and Industry Impact

The proposal also aims to eliminate position limits for physically settled FLEX options—customizable contracts often used by large investors for hedging and structured products. This adjustment would make IBIT’s rules consistent with commodity-based ETFs like the SPDR Gold Trust (GLD), which already operate without such restrictions. Tim Sun of HashKey Group emphasized that this shift responds to institutional demand for regulated, exchange-traded Bitcoin exposure, moving the focus from speculation to long-term investment strategies.

IBIT’s Rapid Expansion

Since its debut in early 2024, BlackRock’s IBIT has experienced remarkable growth, reaching $86.2 billion in assets under management and averaging 44.6 million shares traded daily as of September 2025. The ETF’s liquidity and depth now rival those of established funds. Nasdaq argues that raising the contract limit is essential to prevent obstacles in hedging and yield strategies. Vincent Liu of Kronos Research predicts that approval would result in narrower bid-ask spreads and deeper order books, benefiting both institutional and retail traders.

Regulatory Review and Market Outlook

The SEC has opened a public comment period for the proposal, set to end on December 17, 2025. Should the changes be approved, analysts anticipate a 25-30% boost in options market liquidity. Bitcoin analyst Adam Livingston described the development as a sign that crypto is maturing, placing Bitcoin on par with blue-chip stocks in terms of market infrastructure.

Reducing OTC Reliance and Supporting Market Stability

Nasdaq’s filing also highlights IBIT’s role in decreasing dependence on less transparent over-the-counter markets, a concern for both regulators and investors. The exchange’s research suggests that the higher limits would not threaten Bitcoin’s price stability, thanks to the ETF’s managed creation and redemption process. This aligns with the broader trend of Bitcoin being treated as a hedge against inflation and economic uncertainty by institutional investors.

Setting a Precedent for Crypto ETFs

The SEC’s decision could pave the way for similar changes across other crypto ETFs, further integrating Bitcoin into mainstream financial markets. As BlackRock continues to grow its Bitcoin holdings—surpassing $71 billion across its funds in the third quarter of 2025—this regulatory development could help solidify crypto’s place in institutional investment portfolios.