NYSE Arca Loosens Rules for Bitcoin Options Trading
Published Date: 8/1/2025
Notice
Summary
NYSE Arca just got the green light to change the rules for options trading on two popular Bitcoin funds, BTC and BITB. They’re raising the limits on how many options traders can hold and letting these options trade with more flexibility. These updates kick in soon and could open up new ways for investors to play in the Bitcoin options market.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Big increase to BTC/BITB options limits
The Exchange removed the old 25,000-contract cap for options on BTC and BITB and will apply the standard Exchange Rule 6.8-O position limits instead. The filing states BTC and BITB qualify for the 250,000-contract limit (the 250,000 level requires at least 100,000,000 shares traded in the most recent six-month period) based on six-month volume figures as of November 25, 2024.
FLEX options on BTC and BITB allowed
NYSE Arca will permit FLEX Fund equity options on BTC and BITB to trade on the Exchange rather than only in the OTC market. FLEX Fund options listed on the Exchange will be centrally traded with transparent quotations and transaction reporting, and all contracts will be issued and guaranteed by the Options Clearing Corporation (OCC).
FLEX and non-FLEX positions counted together
Positions in FLEX options on BTC or BITB will be aggregated with positions in non-FLEX options on the same Fund when calculating position and exercise limits. For example, a 250,000-contract position would represent 25,000,000 shares of the Fund and FLEX plus non-FLEX holdings will count toward that limit.
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