Two exchanges affiliated with the New York Stock Exchange have removed the 25,000 limit on options contracts linked to 11 exchange-traded funds.
NYSE Ark i NYSE On March 10, Americans each filed three rule changes with the Federal Register to remove contract position limits and price discovery restrictions on options tied to Bitcoin (BTC) and Ether (ETH) ETFs listed on their exchanges.
They were confirmed Sunday by the Securities and Exchange Commission, and the SEC waived the standard 30-day waiting period for both sets of proposed rule changes, meaning they take effect.
The limits were imposed when cryptocurrency options ETFs first launched in November 2024. Limits of this nature are typically imposed to prevent market manipulation and volatility. T
The removal of these limits now brings them in line with the treatment of options on other commodity ETFs and provides institutions with greater trading flexibility, while potentially increasing liquidity and making it easier to enter and exit positions.
It also allows you to trade crypto options as FLEX options, which include customizable conditions such as custom strike prices, expiration dates, and strike styles.
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The rule changes affect a total of 11 cryptocurrency ETF options, including BlackRock iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB).
This also applies to Bitcoin and Ether ETFs issued by Bitwise and Grayscale.
In delayed July, the SEC approved removing the 25,000-contract position limit for the Grayscale Bitcoin Trust ETF (GBTC).
Meanwhile, one of the Nasdaq options exchanges, the Nasdaq International Securities Exchange, is searching increasing the contract position limit for IBIT BlackRock to 1 million.
The proposed rule change is still under review, according to the SEC’s Feb. 27 notice.
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