Nasdaq Asks SEC to Lift Options Limits on Bitcoin and Ethereum ETFs
Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission to lift options position limits that currently restrict trading in a number of spot crypto exchange-traded funds, naming BlackRock’s IBIT and ETHA among the affected products. The SEC notice dated January 21 records Nasdaq’s request to amend its rules so market participants can engage in broader options strategies tied to BTC and ETH ETFs. If approved, the change could deepen options liquidity and make hedging and structured strategies more accessible to institutional and retail participants, potentially attracting additional flows into the underlying ETFs. The move signals continued maturation of crypto-linked capital markets, but real-world impact will depend on SEC sign-off and how quickly market makers and investors expand derivatives activity around these funds.