Nasdaq Seeks Parity, Files to Scrap Crypto Options Limits

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A new filing from the US exchange Nasdaq proposes removing position limits on options tied to spot Bitcoin and Ether ETFs. The request to the Securities and Exchange Commission is intended to align the rules for these crypto products with those governing options on other commodity-tracking funds.

According to the filing, which was submitted on January 7 and made effective this Wednesday, the change lifts the existing 25,000-contract limit for options on a suite of Bitcoin and Ether ETFs. This includes products from prominent issuers such as BlackRock, Fidelity, and Grayscale listed on Nasdaq’s platform.

The SEC waived its standard 30-day waiting period, allowing immediate implementation. The commission preserved its authority to potentially suspend the rule change within a 60-day window if further review is justified.

These options provide traders the right, without obligation, to purchase or sell the underlying asset at a set price before expiration. Limits are traditionally imposed to curb excessive speculation, prevent manipulation, and reduce concentration risks that can heighten volatility or threaten stability.

Nasdaq argued the revision allows it to treat digital asset options the same as all other qualifying options. The exchange believes the proposal eliminates unequal standards without weakening the protections afforded to investors.