Nasdaq filed with the U.S. Securities and Exchange Commission a proposed rule to eliminate position and exercise limitations on exchange-traded fund options linked to Bitcoin spot. This would allow crypto-linked derivative products to be integrated into traditional derivative markets.
It was originally a proposal. filed On Jan. 7, and effective on January 21, the current cap of 25,000 contracts on options related to Bitcoin and Ethereum listed ETFs on Nasdaq will be eliminated.
The affected products are products that include money from BlackRockAccording to the filing, Fidelity is among those that are affected.
SEC waived the 30-day standard waiting period and allowed the rule to go into effect immediately. However, the SEC retained the right to suspend the change within 60 days, should it be deemed necessary.
The public is invited to comment on the proposed rule. A final SEC decision is expected in late February, unless it is suspended.
Nasdaq claimed that removing the limitations would allow for crypto ETFs to be treated as options. “in the same manner as all other options that qualify for listing,” Investor protection is not undermined by eliminating the “unfair treatment” that it describes.
According to the exchange, this change will support market efficiency and maintain safeguards against excessive risk as well as manipulation.
You have a number of options. derivative contracts The right to sell or buy an asset for a fixed price at any time before the expiration date is given by the trading platform. Position and exercising limits are often imposed by banks to limit concentrated positions, which can increase volatility or cause markets to destabilize.
Nasdaq approved the listing of options on crypto-only ETFs in 2025 as commodities-based trusts. Although the decision permitted Bitcoin and Ethereum ETFs options to be traded, position limits still remained.
Nasdaq’s participation in cryptocurrency markets has increased steadily over the last few years.
Nasdaq is pushing digital assets, including bitcoin.
The exchange rate for November is – filed Separately, a proposal has been made to lift the limit of one million contracts on positions tied to BlackRock’s iShares Bitcoin Trust. The reason given is that institutional demand for options and their use as hedging strategy have increased.
Exchanges have also been pushing into cryptocurrency indexing and tokenization. Nasdaq Group, CME Group and Nasdaq merged in January. announced Plans to combine their crypto benchmarks into the Nasdaq CME Crypto Index. This index tracks digital assets such as Bitcoin, Ether XRP Solana Cardano Avalanche, and XRP.
The latest rule changes, if approved, would be another step towards normalizing Bitcoin derivatives in U.S.-regulated markets. This will further blur the lines between traditional financial assets and crypto native assets.
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Source: bitcoinmagazine.com
