<p>Nasdaq wants to take the handcuffs off crypto ETF options trading.</p>
<p>The stock exchange <a href="https://www.sec.gov/files/rules/sro/nasdaq/2026/34-104649.pdf" target="_blank" rel="noopener noreferrer nofollow">filed a rule change</a> with the US SEC on January 21 to remove the 25,000-contract position and exercise limits on Bitcoin and Ethereum ETF options. BlackRock’s IBIT and ETHA, Fidelity, Grayscale, Bitwise, ARK/21Shares, and VanEck products are all included.</p>
<p>The SEC waived its usual 30-day waiting period. The rule is now effective immediately.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>Nasdaq stated the change would <em>“allow the Exchange to treat Crypto Assets in the same manner as all other options that qualify for listing.”</em></p>
</blockquote>
<h2 class="wp-block-heading" id="h-what-changes-for-traders">What Changes for Traders</h2>
<p>Until now, crypto ETF options operated under tighter restrictions than traditional commodity ETFs. This filing fixes that gap.</p>
<p>Nasdaq called the proposal “just and equitable,” arguing it prevents unfair discrimination and keeps markets free and open. The exchange also noted similar changes are expected across other options platforms.</p>
<p>The SEC has not received public comments yet. A final decision is expected by end of February.</p>
<h2 class="wp-block-heading" id="ibit-already-ranks-among-top-us-options">IBIT Already Ranks Among Top US Options</h2>
<p><a href="https://coinpedia.org/crypto-live-news/bitcoin-etfs-gain-754m-in-largest-single-day-inflows/" target="_blank" rel="noopener noreferrer nofollow">BlackRock’s Bitcoin ETF</a> is not waiting around for regulatory clarity to gain traction.</p>
<p>IBIT currently ranks 9th among all US assets by options open interest, with over 7.7 million active contracts. The ETF cracked the top 10 list just over a year after its debut.</p>
<p>That risk-off mood showed up in recent fund flows. Bitcoin ETFs saw $1.58 billion in outflows over three days. BlackRock led withdrawals at $356.6 million. Fidelity’s FBTC followed with $287.7 million in redemptions.</p>
<h2 class="wp-block-heading" id="2026-started-strong-despite-recent-pullback">2026 Started Strong Despite Recent Pullback</h2>
<p>The bigger picture looks different.</p>
<p>US spot Bitcoin ETFs pulled in $1.16 billion in net inflows during the first two trading days of 2026. January 5 alone saw $697 million flow in, the highest single-day total since October 2025.</p>
<p>BlackRock’s IBIT has added $888 million year-to-date. Total ETF assets under management now sit around $134 billion.</p>
<p>ETFs are absorbing more than 100% of the newly mined Bitcoin supply. That dynamic could push BTC beyond its usual four-year price cycle, according to analysts tracking institutional flows.</p>
<h2 class="wp-block-heading" id="h-faqs">FAQs</h2>
<div class="schema-faq wp-block-yoast-faq-block">
 <div class="schema-faq-section" id="faq-question-1769087529863">
  <strong><strong>Does this rule change increase risk for everyday investors?</strong></strong>
  <p>The change mainly affects sophisticated options traders rather than buy-and-hold ETF investors. Retail traders may see higher volatility in options pricing, but ETF share trading itself is unchanged.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1769087543323">
  <strong><strong>Could this decision influence how the SEC treats future crypto-linked products?</strong></strong>
  <p>Yes. Allowing crypto ETF options to follow standard rules may signal a shift toward regulatory normalization, which could shape approvals for other crypto derivatives.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1769087544190">
  <strong>What happens if the SEC ultimately rejects the rule after review?</strong>
  <p>If the SEC overturns it, Nasdaq would need to reinstate limits, and existing large positions could face forced reductions. That outcome could temporarily disrupt liquidity.</p>
 </div>
 <div class="schema-faq-section" id="faq-question-1769087582536">
  <strong>Who benefits most from the removal of options limits?</strong>
  <p>Institutional investors, market makers, and hedging-focused traders benefit most, as they rely on larger positions to manage risk and provide liquidity at scale.</p>
 </div>
</div>

Nasdaq Pushes SEC to Ease Bitcoin and Ethereum ETF Options Limits

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