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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Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
Previous / Next Documents
Previous: 2026-01378, Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Restrictions on Certain Crypto Assets
Nasdaq BX just removed some old limits on trading options tied to popular Bitcoin and Ethereum ETFs. This change lets traders buy and sell more freely, starting right away, which could shake up crypto investing on the exchange. If you trade these crypto-related options, get ready for bigger moves and new opportunities!
Next: 2026-01380, Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Remove Restrictions on Certain Crypto Assets
Nasdaq is removing some rules that limited trading in options tied to popular crypto ETFs like Bitcoin and Ethereum funds. This change lets traders buy and sell more of these crypto-related options without hitting old limits, starting right away. Investors and traders in these crypto ETFs will feel the impact, with more freedom to trade and possibly bigger moves in the market.