SEC Caps Bitcoin Options Bets: No More Wild ETF Exercises
Published Date: 3/20/2025
Notice
Summary
Nasdaq ISE wants to set new rules for how many options traders can hold and exercise on the iShares Bitcoin Trust ETF, including special flexible options. This affects anyone trading these Bitcoin-related options and could change how much risk traders can take. The SEC is reviewing the updated plan and will decide by April 6, 2025, so keep an eye out for the final call!
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
IBIT Options Limits Raised Tenfold
If you trade options on the iShares Bitcoin Trust ETF (IBIT), Nasdaq ISE proposes increasing the position and exercise limits from 25,000 contracts to 250,000 contracts. The change would be made by removing IBIT from Supplementary .01 to Options 9, Sections 13 and 15 so IBIT is subject to the limits in Options 9, Section 13(d), and any future limits would be reviewed every six months.
FLEX Options Proposal Removed
Amendment No. 1 (filed March 6, 2025) removed the Exchange's earlier proposal to permit trading of flexible exchange (FLEX) options on IBIT. That means this filing no longer includes a change to allow IBIT FLEX options.
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