The New York Stock Exchange has completed the rule change to eliminate the trading limits on cryptocurrency ETF options
According to The Block, NYSE Arca and NYSE American, subsidiaries of the New York Stock Exchange, have submitted rule changes to the SEC to eliminate the 25,000 contract position and exercise limits for spot btc-42">Bitcoin and Ethereum ETF options.
The U.S. Securities and Exchange Commission (SEC) waived the standard 30-day waiting period for these two documents, allowing the changes to take effect immediately upon submission, marking the completion of this adjustment by all major options exchanges in the United States. The rule change covers 11 cryptocurrency ETF products, including BlackRock IBIT, Fidelity FBTC, ARK 21Shares ARKB, Grayscale Bitcoin and Ethereum Trusts, and Bitwise's Bitcoin and Ethereum ETFs. These products can now determine position limits according to the standard framework of each exchange, with large liquidity ETFs eligible for limits of 250,000 or higher.
This move helps institutional investors implement hedging strategies and basis trading more efficiently. Additionally, the Nasdaq ISE has submitted a proposal to increase the IBIT exclusive options position limit to 1 million contracts, which is currently under review by the U.S. SEC. If approved, this proposal will bring the position size of IBIT closer to that of the largest stock ETFs. The comment period for the related documents will end on April 13.
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