Bitcoin News Today: Nasdaq Seeks to Elevate Bitcoin ETF Trading to Gold Standards

Nasdaq has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to increase the trading limits for options linked to BlackRock's iShares Bitcoin Trust (IBIT) from 250,000 to one million contracts, a move that underlines growing institutional adoption of Bitcoin derivatives. The International Securities Exchange (ISE), a Nasdaq subsidiary, argued that the adjustment is necessary to align IBIT with top-tier ETFs like iShares MSCI Emerging Markets and SPDR Gold Trust, which already support similar high trading limits according to analysis. This proposal comes as IBIT, the largest Bitcoin ETF by assets under management, has rapidly become a cornerstone for institutional strategies, with its options market surpassing Deribit, a leading crypto-native derivatives platform, in open interest.

The request highlights IBIT's explosive growth and liquidity. Since its launch in early 2024, the ETF has amassed over $100 billion in assets, a milestone that took gold ETFs like SPDR Gold Trust (GLD) over a decade to achieve according to reports. Institutional investors, including Harvard University's endowment and the Abu Dhabi Investment Committee, have significantly increased their holdings in IBIT, viewing Bitcoin as a store of value akin to gold according to analysis. Nasdaq's analysis suggests that even if all one million contracts were exercised simultaneously, the impact on the broader Bitcoin market would be minimal, accounting for just 0.284% of the total supply. This calculation reinforces the argument that the higher cap is both necessary and proportionate to IBIT's market depth.

The proposal also seeks to remove position and exercise limits for physically settled FLEX IBIT options, a feature already available for commodity ETFs like GLD. FLEX options are tailored for large funds and allow for customized hedging strategies, a flexibility that experts argue is critical for Bitcoin's integration into traditional financial systems according to analysis. Jeff Park of Bitwise Asset Management noted that the current 250,000-contract cap was "too low" to meet institutional demand, while Bloomberg analyst Eric Balchunas praised BlackRock's role in driving innovation in the Bitcoin ETF space according to reports.

The move reflects a broader shift in how institutions perceive Bitcoin. BlackRock's IBIT has not only attracted record inflows but also demonstrated resilience during market volatility. For instance, despite a recent $1.78 billion outflow in November 2025, the ETF's assets under management remain at $73 billion, the largest among U.S. Bitcoin ETFs. This resilience is attributed to its securitized structure, which allows investors to hold Bitcoin through a regulated, custody-backed vehicle on Nasdaq according to reports. Meanwhile, BlackRock's recent registration of an Ethereum staking ETF and plans to tokenize its ETFs further signal its commitment to expanding digital asset offerings.

The approval of this proposal could catalyze deeper participation from hedge funds and institutional investors, who rely on robust liquidity and flexible trading tools. Nasdaq's filing aligns with the SEC's broader regulatory framework, which has increasingly recognized Bitcoin's legitimacy as an investable asset since the approval of spot Bitcoin ETFs in January 2024. If granted, the higher limits would position IBIT as a benchmark for Bitcoin derivatives, mirroring the role of gold ETFs in the commodities market.