SEC raises IBIT options limit to 1 million contracts

The U.S. Securities and Exchange Commission allowed NYSE Arca to raise the position and exercise limits for options tied to BlackRock’s iShares Bitcoin Trust to 1 million contracts from 250,000, a fourfold increase that took effect immediately. NYSE Arca said the previous cap no longer reflected trading activity in IBIT options and that the higher limit should improve liquidity, help market makers manage inventory and hedges more efficiently, and give hedge funds, asset managers, banks and other large investors more room to run trading and hedging strategies without splitting positions across caps. The exchange also said the new limit aligns with similar changes already recognized for Nasdaq ISE, Nasdaq PHLX and BOX Exchange, while the SEC said it will continue to accept public comments before reaching a final conclusion.