Nasdaq Tweaks Bitcoin ETF Rules, Forgets Abstract
Published Date: 11/26/2025
Notice
Summary
Nasdaq ISE wants to let traders hold and exercise more options on the iShares Bitcoin Trust ETF (IBIT), including special FLEX options. This change affects anyone trading IBIT options and aims to give more flexibility and bigger trading opportunities. The proposal was filed in November 2025 and is now open for public comments before it can take effect.
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
IBIT Options Limits Raised to 1,000,000
The Exchange proposes to raise the position and exercise limits for options on the iShares Bitcoin Trust (IBIT) from the current 250,000 contracts to 1,000,000 contracts. This change was filed on November 13, 2025 and is now published for comment.
Physically-Settled FLEX IBIT Options Lose Limits
The Exchange proposes to remove the position and exercise limits that currently apply to physically-settled FLEX equity options on IBIT so that those FLEX contracts would have no position or exercise limits, like most other ETF FLEX options. The proposal would keep aggregation and limits for cash-settled FLEX where applicable.
FLEX on-Exchange Reduces OTC Credit Risk
The proposal would permit more FLEX IBIT options to trade on-exchange rather than over-the-counter (OTC). Exchange-traded FLEX contracts are issued and guaranteed by the OCC and can be closed with a liquidating transaction instead of being held until expiration, which reduces counterparty credit risk for traders.
Large-Position Reporting Requirement Stays
The Exchange will keep its existing reporting rule that Members must report to the Exchange any customer who held aggregate large long or short positions of 200 or more option contracts on the same side of the market for the previous day. Market Makers remain exempt from this reporting requirement, although the Exchange may access Market Maker position information.
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