Nasdaq Seeks Significant Increase in IBIT Options Limits

The Nasdaq International Securities Exchange has filed a proposal with the US Securities and Exchange Commission (SEC) to increase the position limits for options on BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) to 1 million. This move is intended to boost market liquidity and accommodate the growing demand for IBIT.

Purpose of Position Limits

Position limits are in place to prevent any single investor from controlling an excessive number of option contracts on a given stock. According to the notice and SEC filing, these limits mitigate the risk of manipulative schemes that could impact prices.

Reasons for the Proposed Increase

In its filing, submitted on November 13th, Nasdaq requested an increase to the BlackRock ETF limit from 250,000 contracts to 1 million. The exchange cites the ongoing surge in demand for IBIT, arguing that the current limit hinders trading activity and investors' strategies, such as the use of effective hedging instruments or income-generating approaches.

Anticipated Approval and Impact

Vincent Liu, chief investment officer at quantitative trading firm Kronos Research, told Cointelegraph that the SEC is likely to approve the proposal because “these adjustments are routine once an asset proves it can handle real volume.” He added, “If approved, expect thicker order books, tighter spreads, and a more efficient options market.”

IBIT Placed on Par With Tech Giants

Meanwhile, Adam Livingston, a Bitcoin (BTC) analyst and author, stated in a series of posts on X (formerly Twitter) that Nasdaq's move places BlackRock’s Bitcoin ETF in the same league as the “largest, most liquid equities on Earth,” such as tech giants Apple and Microsoft.

Market Implications

Livingston concluded, “They did it because the market has already decided Bitcoin is a mega-cap asset, whether Washington likes it or not. This is the moment every banker secretly feared.”

Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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