Nasdaq Seeks to End Caps on Bitcoin, Ethereum ETF Options

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Nasdaq Pushes to Scrap Limits on Bitcoin and Ethereum ETF Options

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 23, 2026

Key Takeaways

Nasdaq has asked the SEC to remove the 25,000-contract cap on Bitcoin and Ethereum ETF options traded on its exchange;
The SEC approved the change to take effect immediately, butit can still suspend it within 60 days if needed;
Nasdaq says the update aligns crypto ETF options with those for other commodities while maintaining investor protections.

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Nasdaq Pushes to Scrap Limits on Bitcoin and Ethereum ETF Options

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Nasdaq has asked US regulators to remove trading limits on options connected to spot Bitcoin BTC $89,176.47 and Ethereum ETH $2,938.27 exchange-traded funds (ETFs).

The request, submitted to the Securities and Exchange Commission (SEC) on January 7, removes the 25,000-contract cap that currently applies to several Bitcoin and Ethereum ETF options traded on Nasdaq.

The rule covers funds managed by firms such as BlackRock, Fidelity, Bitwise, Grayscale, ARK/21Shares, and VanEck.

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The SEC allowed the adjustment to take effect right away, which skipped its usual 30-day waiting period. However, the agency can still halt the rule within 60 days if it decides that a deeper review is needed.

Options give traders the right to buy or sell an asset at a set price within a given time. Exchanges and regulators often place position limits on these contracts to prevent excessive speculation and reduce the risk of market manipulation or large, unstable holdings.

Nasdaq explained that the update would let it treat digital-asset ETFs the same way it treats other qualified options. The exchange said the decision would remove inconsistent rules while still maintaining investor protection.

A public comment window is now open for feedback on the proposal. Unless the SEC decides to delay it, a final decision should come by the end of February.

Meanwhile, the New York Stock Exchange (NYSE) is creating a blockchain-powered platform for 24/7 trading of tokenized stocks and ETFs. How does it work? Read the full story.