Bitcoin News Today: Nasdaq Elevates Bitcoin to Mainstream Status with 4X IBIT Options Expansion

Nasdaq is seeking regulatory approval to quadruple the position and exercise limits for options tied to BlackRock's iShares Bitcoin Trust (IBIT), a move that underscores the growing institutional adoption of Bitcoin derivatives. The Nasdaq International Securities Exchange (ISE) has proposed raising the cap from 250,000 to 1 million contracts, aligning IBIT with high-liquidity ETFs like iShares MSCI Emerging Markets and SPDR Gold Trust. This adjustment reflects the rapid growth of the IBIT ETF, which has become the largest market for Bitcoin options open interest, surpassing platforms like Deribit. Analysts argue that the increased limits will accommodate institutional demand, improve market depth, and enable larger hedging and trading strategies according to recent reports.

BlackRock's IBIT has seen explosive growth, with a market capitalization of $86.2 billion and an average daily volume of 44.6 million shares as of September 2025. The exchange estimates that even a fully exercised 1 million contract position would account for just 7.5% of IBIT's float and 0.284% of total Bitcoin supply, minimizing potential market disruption. The proposal also seeks to remove limits for physically settled FLEX options, a tool used by large funds for customized hedging, aligning IBIT with commodity-based ETFs like GLD.

The move signals a broader recognition of Bitcoin as a mainstream asset. Nasdaq's proposal positions IBIT alongside equities like Apple and NVIDIA, standardizing position limits to 1 million contracts for fairer institutional access. This shift aligns with BlackRock's recent 14% increase in IBIT holdings, raising its stake to $156 million in Q3 2025. Bloomberg ETF analyst Eric Balchunas noted that the change removes barriers to larger trades and validates Bitcoin's integration into traditional finance according to industry analysis.

Institutional participation in Bitcoin ETFs has surged with lifetime inflows exceeding $40 billion as of November 2025. This trend is amplified by regulatory clarity, including SEC approvals for spot Bitcoin ETFs, which have demystified crypto for institutional players. JPMorgan's recent launch of a structured note linked to IBIT further illustrates the asset's credibility, offering clients leveraged exposure while addressing custody risks.

Parallel developments in stablecoin adoption highlight the convergence of crypto and traditional finance. Visa's partnership with Aquanow to expand stablecoin settlements across the CEMEA region aims to reduce cross-border transaction costs. By leveraging blockchain-based solutions like USDC, Visa enables 365-day settlements, addressing pain points such as intermediary fees. Monthly stablecoin settlement volume has reached a $2.5 billion annualized run rate, signaling growing institutional confidence in digital assets.

The combined impact of Nasdaq's proposal and Visa's infrastructure upgrades suggests a maturing crypto ecosystem. Institutions are increasingly treating Bitcoin as a macro asset, with experts predicting reduced volatility and enhanced liquidity as derivatives markets deepen. For Bitcoin to achieve long-term stability, however, regulatory frameworks must address operational challenges faced by smaller crypto firms, ensuring compliance without stifling innovation.