Bitcoin News Today: Bitcoin Gains Traditional Asset Status as Nasdaq Aligns IBIT with Major ETFs

Nasdaq's International Securities Exchange (ISE) has proposed a significant expansion of trading limits for options linked to BlackRock's iShares Bitcoin Trust (IBIT), signaling growing institutional confidence in Bitcoin derivatives. The exchange seeks to raise position and exercise limits from 250,000 to 1 million contracts, aligning IBIT with major ETFs like iShares MSCI Emerging Markets (EEM) and SPDR Gold Trust (GLD) according to analysis. This move reflects IBIT's rapid ascent as the largest Bitcoin options market by open interest, surpassing platforms like Deribit according to market data. The proposal underscores a broader shift in how Wall Street is integrating Bitcoin into mainstream financial infrastructure, with Nasdaq positioning it alongside traditional commodities and equities according to industry experts.

The ISE's filing highlights surging demand for IBIT options, driven by institutional investors seeking hedging, income-generation, and speculative strategies. The exchange argues that even a fully exercised 1 million-contract position would represent just 0.284% of Bitcoin's total supply, minimizing systemic risk. Additionally, Nasdaq seeks to eliminate position limits for customized FLEX options, which are widely used by large funds for tailored hedging according to trading data. This adjustment aligns IBIT with gold-based ETFs like GLD, which already enjoy unlimited FLEX options according to market analysis. Analysts like Eric Balchunas of Bloomberg and Jeff Park of Bitwise Asset Management have praised the move, noting that the previous cap was restrictive and that the increase accommodates growing institutional participation according to market commentary.

BlackRock's IBIT has become a cornerstone of Bitcoin's regulated derivatives market, with $86.2 billion in assets under management and average daily trading volumes exceeding 44.6 million shares according to financial reports. Its dominance is further reinforced by recent developments, including JPMorgan's launch of a structured note tied to IBIT. The product, aligned with Bitcoin's halving cycle, offers investors leveraged exposure or guaranteed returns contingent on price performance according to product details. Such innovations underscore Bitcoin's transition into a tradable macro asset class, attracting conservative institutional capital previously hesitant to engage directly with crypto markets according to industry analysis.

Nasdaq's proposal also signals a maturation of U.S. regulatory frameworks for digital assets. By treating IBIT similarly to established ETFs, the exchange is normalizing Bitcoin as a legitimate investment vehicle. The SEC's approval process, which includes a public comment period through December 17, 2025 according to regulatory filings, will determine the timeline for implementation. If approved, the move could unlock new liquidity and deepen market infrastructure, potentially accelerating Bitcoin's adoption among pension funds, hedge funds, and other large players according to industry projections.

The implications extend beyond Nasdaq and BlackRock. As Bitcoin derivatives gain traction, they provide regulated alternatives to opaque over-the-counter markets, enhancing transparency and risk management for institutional participants. This shift is critical for scaling Bitcoin's role in global finance, particularly as macroeconomic cycles and halving events drive volatility. With IBIT now central to both spot and derivatives markets, its success could catalyze further innovation in Bitcoin-linked products, from structured notes to yield strategies according to market analysis.