• Nasdaq seeks to quadruple the day by day choices restrict for BlackRock’s IBIT from 250,000 to 1 million contracts resulting from rising institutional demand.
  • IBIT dominates Bitcoin ETF choices, with US$50 billion (AU$77 billion) in open curiosity, accounting for 98% of buying and selling quantity and 96% of open curiosity.
  • The proposal contains FLEX choices exemptions and goals to deepen liquidity, enhance market effectivity, and facilitate bigger, lower-risk buying and selling methods.

Nasdaq’s Worldwide Securities Change has utilized to the US Securities and Change Fee (SEC) to lift the day by day buying and selling restrict on choices for BlackRock’s iShares Bitcoin Belief (IBIT) from 250,000 to 1,000,000 contracts. The request highlights rising curiosity from institutional traders in search of extra subtle methods to hedge and handle Bitcoin publicity.

The submitting emphasises that IBIT’s present cap restricts buying and selling exercise and limits the flexibility of market contributors to implement bigger, lower-risk methods. With a market capitalisation of US$86.2 billion (AU$133.3 billion) and common day by day quantity of 44.6 million shares, IBIT now rivals the biggest fairness ETFs when it comes to scale and liquidity. 

Nasdaq additionally seeks to exempt bodily delivered FLEX choices from any caps, aligning IBIT with different main commodity ETFs and inspiring buying and selling to shift from over-the-counter markets to regulated venues.

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IBIT Dominates Bitcoin Choices Market

IBIT has quickly change into a dominant participant in Bitcoin choices markets. Open curiosity in its choices exceeded US$50 billion (AU$77 billion) in October, comparable with the Deribit trade. The ETF accounts for almost all Bitcoin ETF choices exercise, with 98% of buying and selling and 96% of open curiosity, demonstrating sturdy institutional adoption.

This improve marks the second time Nasdaq has sought to increase IBIT’s place limits. The primary adjustment, elevating the restrict tenfold to 250,000 contracts earlier this yr, was accredited by the SEC in July after exercise accelerated shortly after choices have been launched. 

Analysts observe that the present proposal displays continued development in institutional participation, as bigger traders more and more search regulated publicity to Bitcoin by way of ETFs.

Specialists anticipate {that a} larger restrict will allow extra structured merchandise linked to IBIT, facilitating bigger allocations in a managed method. Whereas short-term Bitcoin costs might not be instantly affected, the change is anticipated to enhance market effectivity, deepen liquidity, and permit establishments to handle positions with lowered danger.

Public feedback on the SEC proposal will likely be accepted till 17 December 2025, signalling {that a} remaining determination could possibly be forthcoming as IBIT demonstrates its capability to deal with higher buying and selling volumes.

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