Nasdaq Pushes to Expand BlackRock Bitcoin ETF Options to 1M Contracts
Nasdaq is making an aggressive move to expand Wall Street’s access to Bitcoin derivatives. In a new filing submitted to the U.S. Securities.
Quick overview
- Nasdaq is seeking to increase position limits for options tied to BlackRock's iShares Bitcoin Trust from 250,000 to 1 million contracts to enhance institutional trading strategies.
- The proposed change reflects growing demand for Bitcoin derivatives and aims to prevent market distortion caused by lower limits.
- Experts believe this move signifies Bitcoin's transition into mainstream finance, comparable to major equity derivatives like those of Apple and Microsoft.
- The industry is closely monitoring the SEC's review of Nasdaq's proposal, which could indicate a shift towards more sophisticated crypto-linked derivatives.
Nasdaq is making an aggressive move to expand Wall Street’s access to Bitcoin derivatives. In a new filing submitted to the U.S. Securities and Exchange Commission on Nov. 13, the Nasdaq International Securities Exchange asked regulators to raise the position limits for options tied to BlackRock’s iShares Bitcoin Trust (IBIT) from 250,000 contracts to 1 million. The move marks one of the largest requested expansions for a crypto-linked product.
Position limits exist to reduce the risk of market manipulation by preventing a single investor from accumulating excessive exposure. Nasdaq argues that the current ceiling restricts trading strategies for institutional investors who increasingly rely on options for hedging, income generation, and liquidity management.
The exchange noted that demand for IBIT options has continued to climb in line with the fund’s rapid growth. Lower limits, it warned, could distort trading conditions and slow the market’s maturation.
JUST IN: 🇺🇸 Nasdaq ISE files to raise position limits for BlackRock's $BTC ETF options to 1,000,000 contracts. pic.twitter.com/TOR4Gqv4f8
— Whale Insider (@WhaleInsider) November 26, 2025
Institutional Volume Drives Change
The proposal comes less than a year after Nasdaq successfully raised the same limit from 25,000 to 250,000 contracts in January. At the time, IBIT far exceeded the 100 million-share trading volume threshold needed to justify expanded derivatives access.
Market participants say the new request signals that Bitcoin products have begun scaling to institutional norms.
Key expert insights include:
- “These adjustments are routine once an asset proves it can handle real volume,” said Vincent Liu, CIO at Kronos Research.
- Larger limits are expected to lead to thicker order books, tighter spreads, and greater pricing efficiency.
- The expansion highlights crypto derivatives’ transition from niche instruments to core components of institutional trading.
Liu described the proposed increase as Bitcoin “breaking out of its training wheels,” suggesting IBIT is now operating in line with major equity derivatives.
Bitcoin Joins Mega-Cap Company Category
Analysts say Nasdaq’s push reflects Bitcoin’s rapid ascent into the financial mainstream. In a series of posts, Bitcoin researcher Adam Livingston said the proposed 1 million-contract limit places BlackRock’s ETF in the same league as Apple and Microsoft, whose options enjoy the highest allowable thresholds.
BREAKING NEWS 🚨
NASDAQ GOES BIG ON #BITCOIN
🇺🇸 Nasdaq says "investors can access Bitcoin with convenience" via BlackRock's spot #Bitcoin ETF. pic.twitter.com/4eOgxcQ5Ft
— BITCOINLFG® (@bitcoinlfgo) February 3, 2024
Livingston argued that the market—not Washington—has already classified Bitcoin as a mega-cap asset. He characterized the filing as a watershed moment for traditional finance: a sign that institutional investors now treat Bitcoin exposure as essential rather than experimental.
As the SEC reviews Nasdaq’s proposal, the industry is watching for signals that crypto-linked derivatives may soon rival the scale and sophistication of legacy equity markets.
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