NYSE completes rule change to remove trading limits on cryptocurrency ETF options

ChainCatcher reports that, according to The Block, the NYSE Arca and NYSE American, subsidiaries of the New York Stock Exchange, have submitted rule changes to the SEC to cancel the 25,000 contract position and exercise limits for spot Bitcoin and Ethereum ETF options.

The U.S. Securities and Exchange Commission (SEC) has waived the standard 30-day waiting period for these filings, allowing the changes to take effect immediately after submission, marking that all major U.S. options exchanges have completed this adjustment. The rule change covers 11 crypto ETF products, including BlackRock’s IBIT, Fidelity’s FBTC, ARK 21Shares ARKB, Grayscale Bitcoin and Ethereum Trusts, and Bitwise Bitcoin and Ethereum ETFs. These products can now have position limits set according to each exchange’s standard framework, with large liquidity ETFs eligible for limits of 250,000 contracts or more.

This move helps institutional investors implement hedging strategies and basis trading more efficiently. Additionally, Nasdaq ISE has submitted a proposal to raise the IBIT exclusive options position limit to 1 million contracts, which is still under review by the SEC. If approved, this would bring IBIT’s position size closer to the largest stock ETFs. The public comment period for the related filings will end on April 13.