tl;dr
Nasdaq has filed to increase the options contract limit for the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts, representing 2.89% exercisable risk. The current limit is considered low, and Nasdaq expects continued options volume growth in IBIT. Analysts view the approval of optio...
Nasdaq has filed to increase the options contract limit for the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts, representing 2.89% exercisable risk. The current limit is considered low, and Nasdaq expects continued options volume growth in IBIT.
Analysts view the approval of options trading in spot Bitcoin ETFs as important for crypto adoption, attracting sophisticated traders and adding liquidity to the market. Despite the approval, there is a perception that crypto still receives special treatment for trading compared to traditional investment vehicles.
Nasdaq filed to raise the current options contract limit of the iShares Bitcoin Trust ETF (IBIT) from 25,000 to 250,000 contracts, representing an exercisable risk of 2.89%, according to a Jan. 6 SEC filing. The current limit represents only 0.4% of exercisable risk for the spot Bitcoin (BTC) exchange-traded fund (ETF), which is considered low by analysts.
A contract limit caps the number of contracts that can be held on the same side of the market. Nasdaq’s requirement cited volume growth as a potential driver of the SEC’s approval, expressing expectation for continued options volume growth in IBIT as opportunities for investors to participate in the options markets increase and evolve.
According to analysts, the approval of options trading in spot Bitcoin ETFs was an important development for crypto adoption as it attracts more sophisticated traders and consequently adds more liquidity to the market. Despite the approval, there is a belief that crypto still receives special treatment for trading compared to traditional investment vehicles, creating unusual market dynamics.