NYSE Lifts Caps on Bitcoin ETF Options for Bigger Trades
Published Date: 8/22/2025
Notice
Summary
NYSE American is changing the rules for how many options contracts you can hold on Bitcoin ETFs like GBTC, BTC, and BITB. They’re removing the old 25,000-contract limit, letting position limits now adjust based on recent trading activity. This change kicks in right away and affects traders dealing with these Bitcoin ETF options, potentially allowing bigger trades.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Bitcoin ETF Options: 25k Limit Removed
The Exchange deleted the 25,000-contract position limit for options on GBTC, BTC, and BITB. Position limits for those Bitcoin ETF options will now be set under Rule 904, Commentary .07(a)-(e) based on trading in the most-recent six-month period and can be as high as 250,000 same-side contracts (eligibility for 250,000 contracts requires at least 100,000,000 shares traded in the most recent six months or alternative thresholds in Rule 904).
Exercise Limits Now Match Position Limits
The exercise limits for options on GBTC, BTC, and BITB will be changed to equal the position limits set under Rule 904. That means exercise limits may increase from the current 25,000 contracts to the same tiered levels allowed under Commentary .07 (including 50,000; 75,000; 200,000; or up to 250,000 contracts) depending on the applicable trading and outstanding-share thresholds.
Position Reporting Requirements Remain
The Exchange kept its existing reporting rules for Bitcoin ETF options: members must still report options positions and hedging information, market makers remain exempt from the reporting requirement (though the Exchange may access market maker data), and the Exchange’s daily reporting threshold for customer aggregate large positions remains at 200 option contracts.
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