The removal of the 25,000 contract position limit on options for 11 crypto exchange-traded funds (ETFs) is now in effect following a recent acknowledgment by the Securities and Exchange Commission. NYSE Arca and NYSE American initiated this change with three rule filings to the Federal Register on March 10, facilitating enhanced trading flexibility for institutional investors.
This adjustment aligns the treatment of crypto options more closely with other commodity ETF options and allows for trading as FLEX options, which can feature customized terms such as non-standard strike prices and expiration dates. The affected ETFs include BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity's Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB), among others.
Previously, these limits were established to curb market manipulation and volatility when crypto ETF options began trading in November 2024. The SEC had approved a similar removal for the Grayscale Bitcoin Trust ETF (GBTC) in late July, while Nasdaq's options exchange is currently seeking to increase the position limit for IBIT to 1 million contracts, pending SEC review.