Nasdaq Seeks Removal of Trading Restrictions on Bitcoin and Ethereum ETFs

Nasdaq seeks approval from the US Securities and Exchange Commission (SEC) to remove options trading restrictions on several Bitcoin and Ethereum ETFs, including BlackRock’s IBIT and ETHA.

Nasdaq Files to Remove Trading Restrictions on Bitcoin and Ethereum ETFs

According to a US SEC notice dated January 21, Nasdaq proposed to amend its options position limit rules and exercise limit rules on several crypto assets. The stock exchange seeks immediate effectiveness of rule changes.

If approved, it will impact options on BlackRock Bitcoin ETF (IBIT) and BlackRock Ethereum ETF (ETHA). Options limit on other ETFs by Grayscale, Bitwise, Fidelity, ARK21Shares, and VanEck will also increase.

The rule change removes the previous 25,000 position and exercise limit restrictions for options on these crypto ETFs. These products will now be subject to the standard position limits outlined in the Nasdaq Options Market rules, as with other exchange-traded fund options.

Nasdaq claimed the proposal promotes ‘just’ and ‘equitable’ principles of trade, prevents unfair discrimination, and supports a free and open market by ensuring consistent regulatory treatment. It imposes no significant burden on competition and protects investors, as similar changes are expected across other options exchanges.

Nasdaq asked the SEC to waive the standard 30-day delay and make the proposal effective immediately. The commission is seeking comments and will make the decision by February-end.

As CoinGape reported earlier, the US SEC has started a review of the proposal to list and trade options on Nasdaq Bitcoin Index amid rising derivatives demand.

BlackRock Bitcoin ETF (IBIT) Among Top Options Open Interest Assets

Options tied to BlackRock Bitcoin ETF (IBIT) rank 11th on the list of assets with the highest options open interest in the U.S. market, with over 5.3 million open interest, according to OpenCharts data.

As of today, IBIT options rank below gold and silver ETFs amid risk-off sentiment among institutional investors. This explains the continuous outflow from spot Bitcoin ETFs, as investors shifted to safe havens.

Total Bitcoin ETF outflows reached $1.58 billion over the past three days, signaling heavy institutional de-risking led by BlackRock and Fidelity. BlackRock’s iShares Bitcoin ETF (IBIT) led withdrawals at $356.6 million, followed by $287.7 million redemptions from Fidelity’s FBTC.

BTC price currently trades near $90,00, up nearly 1% in the past 24 hours. The intraday low and high are $87,231 and $90,430, respectively. Meanwhile, ETH price also trades 1% higher at $3,000 following a more than 11% crash in a week.