Nasdaq PHLX Frees Crypto ETF Options from Trading Chains
Published Date: 1/26/2026
Notice
Summary
Nasdaq PHLX is removing old limits on trading options tied to popular crypto ETFs like Bitcoin and Ethereum funds. This change lets traders buy and sell more freely, starting right away, making the market more flexible and exciting. If you trade these crypto options, get ready for bigger moves and new opportunities without the old restrictions!
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Remove 25,000-Contract Limits
The Exchange proposes to remove the 25,000 contract position and exercise limits that had applied to options on several Bitcoin and Ethereum exchange-traded funds, including 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. Removing the 25,000-contract cap lets traders hold positions in these listed options without that specific limit.
Allow FLEX Options on More Crypto ETFs
The Exchange proposes to permit FLEX (customizable) options to trade on 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, treating those products like other options that may trade as FLEX. This change would let traders use FLEX option features for these listed crypto ETF options.
Stop Aggregating FLEX with Non-FLEX Positions
The Exchange proposes that FLEX equity options on the iShares Bitcoin Trust ETF, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust BTC, and Bitwise Bitcoin ETF would no longer be aggregated with positions on the same non-FLEX underlying ETF for calculating position and exercise limits. That means FLEX positions in those specific crypto ETF options would be treated separately from non-FLEX positions for limit calculations.
Change Effective Immediately Upon Filing
The Commission waived the 30-day operative delay and designated the proposed rule change operative upon filing, and the Exchange filed the proposal on January 7, 2026. That means the Exchange may treat the named crypto ETF options under the amended rules immediately upon filing.
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Previous: 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.
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