Nasdaq applies to cancel the 25,000 contract position limit for Bitcoin and Ethereum ETF options

Nasdaq has submitted a rule change application to the U.S. Securities and Exchange Commission (SEC) seeking to eliminate the position limits on spot Bitcoin and Ethereum ETF options, aligning cryptocurrency ETF options with the rules for other commodity funds.

The proposal was submitted on January 7 and became effective on Wednesday, removing the 25,000 contract limit for institutional Bitcoin and Ethereum ETF options from firms such as BlackRock, Fidelity, Bitwise, Grayscale, ARK/21Shares, and VanEck. The SEC waived the standard 30-day waiting period, allowing the rule to take effect immediately, but retains the authority to suspend it within 60 days.

Nasdaq stated that this move will provide cryptocurrency ETF options with the same treatment as other commodity options, eliminating unequal restrictions. The SEC has opened a comment period, with a final decision expected by the end of February.