Nasdaq ISE Removes Limits on Crypto Asset Trading
Published Date: 1/26/2026
Notice
Summary
Nasdaq ISE just removed some old rules that limited trading certain crypto-related ETFs like Bitcoin and Ethereum funds. This change lets traders have more freedom with these crypto options starting right away, potentially boosting market activity and opportunities. If you trade or invest in crypto ETFs, this update could shake things up for you!
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Crypto options treated like other options
Options on crypto exchange-traded funds (those that qualify under Options 4, Section 3(h)(vi)) will be subject to the same position limits in Options 9, Section 13 and exercise limits in Options 9, Section 15 as other options. The rule also states those crypto options are not restricted from trading as FLEX Options.
Removal of 25,000 limit for listed crypto ETFs
The Exchange proposes to remove the 25,000 contract position and exercise limit that had applied to certain crypto ETF options. The listed funds affected include the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, VanEck Bitcoin ETF, iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust.
Stop aggregating FLEX and non‑FLEX positions for some Bitcoin ETFs
The Exchange proposes to remove language that aggregated FLEX option positions with non‑FLEX positions for the iShares Bitcoin Trust ETF, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust BTC, and the Bitwise Bitcoin ETF. As a result, FLEX equity options on those funds would no longer be aggregated with non‑FLEX positions for calculating position and exercise limits, and certain physically settled FLEX equity options on some of these funds would not be subject to position limits.
Permit FLEX Options for specified crypto ETFs
The Exchange proposes to permit FLEX Options trading for the Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, VanEck Bitcoin ETF, iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust. The proposal removes language that previously excluded these funds from FLEX trading.
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