NYSE Arca and NYSE American have removed the 25,000 contract position limit on options linked to 11 Bitcoin and Ether exchange-traded funds.
The rule changes, filed on March 10 and approved by the Securities and Exchange Commission, took effect immediately after regulators waived the standard 30-day waiting period.
The update allows institutions to trade crypto ETF options as FLEX options, offering customisable terms such as strike prices, expiration dates and exercise styles.
Position limits were originally introduced when crypto ETF options launched in November 2024 to reduce volatility and guard against market manipulation.
Their removal aligns crypto ETF options more closely with other commodity-based ETF derivatives and is expected to improve liquidity and trading efficiency.
Affected products include major funds such as BlackRock’s iShares Bitcoin Trust, Fidelity’s Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF, alongside offerings from Bitwise and Grayscale.
Separately, Nasdaq is seeking approval to raise position limits for BlackRock’s iShares Bitcoin Trust options to 1 million contracts, signalling growing institutional demand for crypto-linked derivatives.
At the time of reporting, Bitcoin price was $68,711.10.