The Nasdaq International Securities Exchange (Nasdaq ISE) has submitted a formal filing with the U.S. Securities and Exchange Commission (SEC) asking to raise the position limit for options tied to BlackRock’s IBIT — a major spot-Bitcoin ETF — from 250,000 contracts to 1,000,000.
The existing limit was originally raised from 25,000 to 250,000 earlier in 2025, as trading volume surged. Nasdaq’s petition makes clear that the previous cap is now viewed as restrictive, especially in the face of growing institutional demand for Bitcoin derivatives.
If approved, this change would represent a major vote of confidence — signaling that regulators and institutions alike see IBIT not merely as a niche crypto product, but as a mainstream financial instrument on par with large-cap equity ETFs and commodity funds.
What this means for the market
According to industry observers, lifting the restrictions could significantly improve market liquidity. One veteran quant trader told media that once limits are removed, IBIT options will see “thicker order books, tighter spreads, and a more efficient options market.” That, in effect, means institutional players — hedge funds, pension funds, large allocators — will find it easier to size up their exposure, hedge large positions, or deploy income-generation strategies without being hamstrung by low contract caps.
One analyst went as far as to say this repositioning places Bitcoin (via IBIT) “in the same league as giant, most liquid equities on Earth” — likening its potential institutional footprint to established giants.
For Bitcoin markets, this may mark a structural evolution: a shift from retail- and crypto-native trading toward a regulated, institutional-grade infrastructure. Transaction volume and derivatives interest could grow, reducing volatility as markets broaden and deepen.
As derivatives markets mature, many see this as a step toward legitimizing Bitcoin as a core asset class rather than a speculative instrument. Over time, that could influence how traditional asset managers allocate — potentially increasing Bitcoin exposure in portfolios that were earlier wary of crypto’s volatility and compliance issues.
With this filing, Nasdaq is effectively arguing that “digital gold” — via IBIT — deserves the same institutional treatment as established ETFs. Investors, regulators, and market watchers will now watch closely whether the SEC approves the proposal and how quickly the market responds.
