Nasdaq ISE wants to increase options limits for Blackrock’s IBIT to one million contracts
- Nasdaq ISE has filed with the SEC to increase the position limit for options on BlackRock’s iShares Bitcoin Trust (IBIT) from 250,000 to 1,000,000 contracts.
- The application also seeks to remove limits on physically fulfilled FLEX-IBIT options.
Nasdaq ISE has filed with the US Securities and Exchange Commission (SEC) to increase the option limits on BlackRock’s IBIT to 1,000,000 contracts. BlackRock’s iShares Bitcoin Trust (IBIT) was approved for listing and trading on its primary exchange, the Nasdaq Stock Market LLC, in early 2024.
IBIT approaches 1M options cap
Die SEC gab knownthat the Nasdaq ISE, one of the most important US options exchanges, the removal of position limits for options on BlackRocks iShares Bitcoin Trust ETF has applied for. The application means the options exchange will increase from the original 250,000 contracts to 1,000,000 contracts.
According to the ISE, the number of IBIT 2025 options has increased significantly and is now replaced by the current one Cap of 250,000 contracts disabled limiting market makers and institutions that need options for hedging and return strategies. The application states:
“The exchange expects options volume in IBIT to continue to grow as opportunities for investors to participate in the options markets expand and evolve.”
The application compares the market capitalization, daily turnover and liquidity of IBIT with the corresponding data of other ETFs that already have a cap of one million contracts and derives its argument for the need for the same cap, otherwise a competitive disadvantage would arise.
The application noted that a fully exercised position of one million contracts represents only about 7.5% of the available Floats und minimal 0,284 % of the entire Bitcoin supply.
Regardless, the proposal aims to remove position and exercise limits for physically settled FLEX IBIT options. This brings the Nasdaq ISE into line with commodity-based ETFs such as GLD and accommodates large funds that use them for individual hedging.
The proposal comes as BlackRock’s IBIT officially overtakes Deribit to become the world’s largest open Bitcoin options trading venue.
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