2025-15071NoticeWallet

Nasdaq Caps Bitcoin ETF Options to Keep Trades Fair

Published Date: 8/8/2025

Notice

Summary

The Nasdaq Stock Market just updated the rules for how many options traders can hold and exercise on four Bitcoin-related ETFs: iShares Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, and Grayscale Bitcoin Trust. This change affects anyone trading options on these ETFs and aims to keep the market fair and balanced. The new limits took effect immediately on August 1, 2025, helping manage risk and protect investors.

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Options Limits Raised to 250,000 Contracts

If you trade options on the iShares Bitcoin Trust (IBIT), Grayscale Bitcoin Mini Trust (BTC), Bitwise Bitcoin ETF (BITB), or Grayscale Bitcoin Trust (GBTC), the same-side position and exercise limits were increased from 25,000 contracts to 250,000 contracts. This rule change took effect immediately on August 1, 2025 and applies to options on all four of these Bitcoin-related ETFs.

Change Aims To Keep Trading On-Exchange (Not OTC)

The Exchange states that increasing these position and exercise limits is intended to prevent market participants from moving trades to over-the-counter (OTC) bilateral markets (which are not publicly reported) and to support transparent, exchange-listed trading for these Bitcoin ETF options.

Reporting Rules for Large Options Positions Stay

Participants who hold large options positions must continue to report certain position information to the Exchange, and the daily reporting threshold for customer accounts remains at 200 or more option contracts of any single class. Market Makers remain exempt from that reporting requirement, though the Exchange may access Market Maker position information.

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Key Dates

Effective Date
Published Date
8/1/2025
8/8/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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