Nasdaq Pushes SEC to Ease Bitcoin and Ethereum ETF Options Limits

Bitcoin ETFs Crash $782M in Holiday Sell-Off

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Nasdaq wants to take the handcuffs off crypto ETF options trading.

The stock exchange filed a rule change with the US SEC on January 21 to remove the 25,000-contract position and exercise limits on Bitcoin and Ethereum ETF options. BlackRock’s IBIT and ETHA, Fidelity, Grayscale, Bitwise, ARK/21Shares, and VanEck products are all included.

The SEC waived its usual 30-day waiting period. The rule is now effective immediately.

Nasdaq stated the change would “allow the Exchange to treat Crypto Assets in the same manner as all other options that qualify for listing.”

What Changes for Traders

Until now, crypto ETF options operated under tighter restrictions than traditional commodity ETFs. This filing fixes that gap.

Nasdaq called the proposal “just and equitable,” arguing it prevents unfair discrimination and keeps markets free and open. The exchange also noted similar changes are expected across other options platforms.

The SEC has not received public comments yet. A final decision is expected by end of February.

IBIT Already Ranks Among Top US Options

BlackRock’s Bitcoin ETF is not waiting around for regulatory clarity to gain traction.

IBIT currently ranks 9th among all US assets by options open interest, with over 7.7 million active contracts. The ETF cracked the top 10 list just over a year after its debut.

That risk-off mood showed up in recent fund flows. Bitcoin ETFs saw $1.58 billion in outflows over three days. BlackRock led withdrawals at $356.6 million. Fidelity’s FBTC followed with $287.7 million in redemptions.

2026 Started Strong Despite Recent Pullback

The bigger picture looks different.

US spot Bitcoin ETFs pulled in $1.16 billion in net inflows during the first two trading days of 2026. January 5 alone saw $697 million flow in, the highest single-day total since October 2025.

BlackRock’s IBIT has added $888 million year-to-date. Total ETF assets under management now sit around $134 billion.

ETFs are absorbing more than 100% of newly mined Bitcoin supply. That dynamic could push BTC beyond its usual four-year price cycle, according to analysts tracking institutional flows.

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