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coinpedia 2025-01-07 08:46:23

NASDAQ ISE Files for SEC Approval to Expand Bitcoin ETF Options by 10x

The post NASDAQ ISE Files for SEC Approval to Expand Bitcoin ETF Options by 10x appeared first on Coinpedia Fintech News NASDAQ ISE has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to increase the position and exercise limits for options on the iShares Bitcoin Trust (IBIT) ETF. The proposed change would raise the limit from 25,000 to 250,000 contracts, reflecting the ETF’s expanding market presence and trading activity. The SEC now has 45 days to approve or reject the proposal. Currently, IBIT options have some of the lowest limits in the industry, prompting NASDAQ ISC to argue that the increase is necessary to accommodate IBIT’s $46.8 billion market cap and average daily trading volume of 39.4 million shares. The new contract cap would represent just 2.89% of IBIT’s outstanding shares, which is still much lower than limits for similar ETFs, such as the SPDR Gold Shares (GLD) and iShares Silver Trust (SLV). “A position limit exercise in GLD would represent 8.17% of the float of GLD; a position limit exercise in SLV would represent 4.8% of the float of SLV, and a position limit exercise of BITO would represent 23.22% of the float of BITO. Consequently, the 250,000 proposed IBIT options position and exercise limit is more conservative than the standard applied to GLD, SLV and BITO, and appropriate,” ISE wrote. If approved, the proposal aims to enhance market liquidity and allow institutional investors to better manage risk. NASDAQ ISE emphasized that the changes are more conservative compared to other ETFs like GLD, SLV, and the Bitcoin Strategy ETF (BEO). The move is part of NASDAQ ISE’s broader effort to expand its digital asset offerings, including seeking approval for Bitcoin options trading. This follows recent regulatory developments, such as the SEC’s approval of rule changes allowing NASDAQ ISE to list options on the BlackRock IBIT ETF.

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