NYSE Completes Rule Change to Eliminate Position Limits for Crypto ETF Options

ChainCatcher report, 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 Bitcoin and Ethereum ETF options. The U.S. Securities and Exchange Commission (SEC) waived the standard 30-day waiting period for these filings, making the changes effective immediately upon submission, marking the completion of this adjustment across all major U.S. options exchanges. The rule change applies to 11 crypto ETF products, including BlackRock’s IBIT, Fidelity’s FBTC, ARK 21Shares’ ARKB, Grayscale’s Bitcoin and Ethereum Trusts, and Bitwise’s Bitcoin and Ethereum ETFs. These products are now subject to standard exchange position limits, with large liquid ETFs eligible for limits of 250,000 contracts or higher. This adjustment enables institutional investors to implement hedging strategies and basis trades more efficiently. Additionally, Nasdaq ISE has submitted a proposal to increase the exclusive position limit for IBIT options to 1 million contracts, which is currently under review by the SEC. If approved, this proposal would bring IBIT’s position size closer to that of the largest equity ETFs. The comment period for the related filings ends on April 13.