Bitcoin News Today: Bitcoin Claims Mega-Cap Status as Options Limits Near Equities' Depth

Nasdaq is pushing to elevate BlackRock's iShares Bitcoin Trust (IBIT) to a new tier of institutional acceptance by proposing a fourfold increase in trading limits for its options contracts. The International Securities Exchange (ISE) has filed a request with the U.S. Securities and Exchange Commission (SEC) to raise position and exercise limits for IBIT options from 250,000 to 1 million contracts, aligning the product with major global equity benchmarks like the iShares MSCI Emerging Markets (EEM) and SPDR Gold Trust (GLD) according to a report. This move underscores the rapid institutional adoption of Bitcoin derivatives, as IBIT has surged to become the largest Bitcoin options market by open interest, surpassing Deribit.

The proposal argues that the current limits restrict market depth and hinder hedging and yield strategies for institutional players. ISE cited IBIT's robust trading volumes—averaging 44.6 million shares daily as of September 2025—and its $86.2 billion market capitalization as justification for the expansion according to data. Even a fully exercised 1 million contract position would represent just 0.284% of all Bitcoin in existence, a scale the exchange deems insufficient to trigger market disruption. The filing also seeks to remove position limits for physically settled FLEX IBIT options, which are used by large funds for custom hedging, aligning them with commodity-based ETFs like GLD according to the filing.

Industry experts have welcomed the shift. Lai Yuen of Fisher8 Capital noted that higher limits would enable institutions to design more sophisticated structured products, boosting capital allocation to Bitcoin ETFs. Tim Sun of HashKey Group emphasized that the move reflects growing institutional demand for Bitcoin exposure, with larger players seeking to increase their allocations. Eric Balchunas of Bloomberg called the proposal long overdue, stating that IBIT's dominance in options trading "finally getting the treatment it deserves."

The SEC's approval is critical, as the public comment period remains open until December 17, 2025. If approved, the move would signal Bitcoin's maturation as a mainstream asset class. The filing aligns IBIT with top-tier ETFs, acknowledging its role in institutional portfolios alongside traditional equities. This development also highlights the SEC's evolving stance on crypto derivatives, as similar limit increases for high-volume assets have historically correlated with improved trading efficiency.

The broader implications for the market are significant. Vincent Liu of Kronos Research observed that expanding limits would lead to tighter bid-ask spreads and deeper order books, enhancing liquidity for options traders. He projected a 25-30% increase in options liquidity post-approval, mirroring trends seen in equity ETFs. Meanwhile, analysts like Adam Livingston argue that the change positions Bitcoin alongside tech giants like Apple and Microsoft in terms of market depth, signaling institutional confidence in its status as a "mega-cap asset."

Nasdaq's proposal is part of a larger trend of regulatory and market infrastructure developments legitimizing Bitcoin. BlackRock's IBIT, launched in early 2024, has attracted over $20 billion in assets under management, driven by spot Bitcoin ETF approvals. The expansion of options trading limits could further integrate Bitcoin into traditional finance, offering institutional investors tools to hedge risk and manage exposure in a regulated environment.

As the SEC reviews the request, the outcome will likely set a precedent for other crypto ETFs. The approval of similar proposals for gold and equity ETFs in the past suggests a path forward for Bitcoin derivatives, provided the market continues to demonstrate stability and depth. For now, the filing marks a pivotal step in Bitcoin's journey from speculative asset to institutional-grade investment.