The Nasdaq exchange is advocating for the Securities and Exchange Commission (SEC) to relax trading restrictions on options for Bitcoin and Ethereum exchange-traded funds (ETFs). On January 21, Nasdaq submitted a formal request to the SEC, asking for the removal of the current cap of 25,000 positions and exercise limits on options trading for various cryptocurrency funds.
If the SEC approves this request, the changes would directly impact BlackRock”s iShare Bitcoin Trust ETF, known by its ticker IBIT, along with the firm”s Ethereum ETF, ETHA. In the future, options on funds managed by Grayscale, Bitwise, Fidelity, ARK21Shares, and VanEck would also benefit from increased position limits.
The proposal indicates that all these crypto ETFs would adhere to the same position limits that currently apply to other funds traded on Nasdaq”s options market. This would level the playing field for cryptocurrency ETFs compared to traditional options.
In its communication to the SEC, Nasdaq argued that lifting these restrictions would foster fair trading conditions. The exchange contended that the adjustment would eliminate unfair treatment among different funds, ultimately supporting an open market. Nasdaq emphasized that uniform rules would protect investors without compromising competition.
Other options exchanges are expected to consider similar updates. Nasdaq has also requested that the SEC bypass the standard 30-day waiting period to implement the new rules immediately. The SEC is currently gathering public feedback on this matter and is anticipated to reach a decision by the end of February.
As the situation unfolds, BlackRock has reportedly been increasing its Bitcoin holdings, seemingly capitalizing on recent price drops. Earlier this month, BlackRock acquired 9,619 Bitcoin, estimated at around $878 million, alongside 46,851 Ethereum valued at approximately $149 million. These transactions occurred over the span of three consecutive days. According to blockchain activity tracking firm Lookonchain, the total of these purchases is approximately $1.03 billion.
Moreover, other firms are also enhancing their Bitcoin reserves. Strategy, a business intelligence software company, acquired 22,305 BTC between January 12 and January 19, investing approximately $2.13 billion in that batch. Following this acquisition, Strategy now holds a total of 709,715 BTC.
In the fast-evolving landscape of cryptocurrency investments, significant moves by major institutions are indicative of larger trends shaping the market.
