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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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."
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2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
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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: 2026-01380, 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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