Bitcoin News Today: Nasdaq Elevates Bitcoin Derivatives to Mainstream Status with Expanded Limits

Nasdaq's International Securities Exchange (ISE) has proposed expanding the position and exercise limits for options on BlackRock's iShares Bitcoin Trust (IBIT) from 250,000 to 1,000,000 contracts, a move that could significantly deepen liquidity in Bitcoin derivatives markets. The adjustment, submitted to the U.S. Securities and Exchange Commission (SEC), aligns IBIT with major equity benchmarks like the SPDR S&P 500 ETF and iShares MSCI Emerging Markets (EEM), reflecting its rapid ascent as a cornerstone of institutional trading. ISE cited surging demand, with IBIT's average daily volume reaching 44.6 million shares as of September 2025 and open interest surpassing Deribit, the leading crypto derivatives platform.

The proposal argues that the current 250,000-contract cap restricts legitimate hedging and income strategies for institutional investors according to filings. Even if fully exercised, the proposed limit would account for just 0.284% of all Bitcoin in existence, a scale ISE deems insufficient to disrupt the broader market. The exchange also seeks to remove position limits for physically settled FLEX IBIT options, aligning them with commodity ETFs like SPDR Gold Trust (GLD) to enable tailored hedging for large funds according to market analysis.

Industry experts have welcomed the move. Jeff Park of Bitwise Asset Management noted the previous cap was "too low" for growing demand, while Bloomberg's Eric Balchunas highlighted BlackRock's leadership in Bitcoin ETF innovation. Lai Yuen of Fisher8 Capital added that the change would facilitate more structured products, enhancing capital allocation to Bitcoin ETFs.

The SEC is now soliciting public comments until December 17, 2025, with approval likely if the asset's volume and liquidity continue to meet regulatory standards. Analysts like Vincent Liu of Kronos Research anticipate tighter spreads and improved market efficiency if the proposal is enacted, signaling a shift from niche to necessary for crypto derivatives according to market analysis.

This development underscores Bitcoin's integration into mainstream finance, with Nasdaq treating IBIT alongside established ETFs and commodities. As institutional participation accelerates, the expanded limits could catalyze further adoption, positioning Bitcoin derivatives as critical tools for hedging and strategic capital deployment.