Nasdaq Seeks SEC Approval for Crypto Options Position Limits Removal

Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to remove position limits on options tied to spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs).

The current 25,000-contract cap would be eliminated, allowing for larger options positions tied to ETFs issued by firms including BlackRock, Fidelity, Ark Invest, VanEck, Grayscale, and Bitwise.

Nasdaq argues that these products now meet the same liquidity, market capitalization, and surveillance standards as other commodity-based ETF options and should be regulated under the same framework.

The proposal places the decision squarely with the SEC, which must determine whether crypto-linked ETF options should continue to face bespoke restrictions or be fully absorbed into existing derivatives regulation.