Nasdaq Tweaks Bitcoin ETF Trading Limits for Smoother Chaos
Published Date: 8/8/2025
Notice
Summary
Nasdaq ISE just updated the rules for trading options on three popular Bitcoin ETFs: Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, and Grayscale Bitcoin Trust. These changes adjust how many options traders can hold and exercise, aiming to keep things fair and smooth. The new rules kicked in right away on August 5, 2025, affecting anyone trading these Bitcoin ETF options and potentially impacting their trading strategies and limits.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
25,000-Contract Cap Removed
If you trade options on the Grayscale Bitcoin Mini Trust (BTC), the Bitwise Bitcoin ETF (BITB), or the Grayscale Bitcoin Trust (GBTC), the Exchange removed the old 25,000-contract position and exercise cap and will instead apply the tiered equity-option limits in ISE Options 9, Section 13 (25,000; 50,000; 75,000; 200,000; or 250,000 contracts, or another number set by the Exchange). This change took effect on August 5, 2025 and means those ETF option classes can qualify for an aggregated limit up to 250,000 same-side contracts where appropriate.
FLEX Options Permitted and Aggregated
If you trade options on BTC, BITB, or GBTC, the Exchange now permits FLEX Options on those ETFs and will aggregate FLEX and non-FLEX positions in the same underlying ETF when calculating position and exercise limits. For example, under a 250,000-contract limit the Exchange said it would restrict a participant from holding positions that could result in the receipt of more than 250,000,000 shares if all options were exercised; this change became effective on August 5, 2025.
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