Bitcoin News Today: Nasdaq's IBIT Options Expansion Marks Bitcoin's Institutional Mainstream Entry

The Nasdaq ISE has submitted a proposal to the SEC to elevate position and exercise limits for options tied to BlackRock's iShares Bitcoin Trust (IBIT) from 250,000 to one million contracts, a move that Bloomberg's Eric Balchunas describes as a pivotal step toward institutional adoption. This adjustment would align IBIT with major equity benchmarks like the iShares MSCI Emerging Markets (EEM) and place it in the same liquidity tier as stocks such as Apple (AAPL) and Microsoft (MSFT) according to Nasdaq's proposal. Analyst Adam Livingston called the development "exceptionally bullish," emphasizing that the expansion opens a 40-fold increase in derivatives trading capacity for Bitcoin, signaling a transition from ETF adoption to a scaled derivatives market.

The proposal reflects IBIT's rapid growth, with the ETF now holding $65.34 billion in assets under management and dominating 69% of Bitcoin ETF trading volume. Nasdaq cited IBIT's accelerating options volume and its market capitalization, which exceeds $157 billion, as justification for the higher limits. The exchange argued that even a fully exercised one million contract position would represent only 7.5% of IBIT's float and 0.284% of all Bitcoin in existence, posing minimal risk of market disruption.

Institutional demand for Bitcoin-linked products is intensifying, with Texas recently allocating $5 million to IBIT as part of its $10 million Strategic Bitcoin Reserve initiative. The state plans to eventually self-custody Bitcoin directly, signaling a broader trend of governments and corporations integrating digital assets into financial strategies according to Texas officials. Abu Dhabi's sovereign wealth funds have also tripled their IBIT holdings in Q3 2025, underscoring global institutional confidence as reported by market analysts.

BlackRock's IBIT has become a cornerstone of Bitcoin exposure for traditional investors, offering institutional-grade custody through Coinbase and eliminating the complexities of direct crypto ownership. Its daily trading volume of 45 million shares ensures efficient liquidity, with the ETF's price closely tracking Bitcoin's movements. This structure has attracted older, long-term investors, who now hold over 95% of ETF assets, stabilizing the market during corrections as detailed in market reports.

The Nasdaq proposal arrives amid a rebound in Bitcoin ETF inflows, with $238.4 million in net inflows recorded on November 21, reversing a three-week outflow streak. While Bitcoin's price has corrected 36% from its October peak, institutional buyers remain resilient, with Abu Dhabi and Asian investors driving accumulation. Analysts suggest that a potential Federal Reserve rate cut in December could further boost ETF inflows, pushing Bitcoin toward $100,000 by early 2026.

The expansion of IBIT options limits is seen as a structural turning point for Bitcoin, enabling larger hedging strategies and reducing volatility. Livingston noted that Bitcoin's price history shows steepest spikes during derivatives market growth, suggesting the move could catalyze a new bull phase. Meanwhile, Nasdaq's alignment of IBIT with top-tier assets underscores Bitcoin's maturation as an institutional asset, with BlackRock's dominance in ETF trading volume reinforcing its role as a gateway for mainstream investors.