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Nasdaq Aligns ETF Options Limits to IBIT’s 250,000 Contracts, But IBIT Expansion Unapproved

According to Bitwise’s Jeff Park, rumors that Nasdaq removed IBIT’s options limits are false; the exchange only standardized other BTC/ETH ETF options at 250,000 contracts, while IBIT’s 1,000,000-contract request remains unapproved.

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Summary

Bitwise advisor Jeff Park refuted rumors that Nasdaq removed IBIT’s options limits or enabled unlimited leverage. The recent change only raised position limits for other Bitcoin and Ethereum ETF options from 25,000 to 250,000 contracts, aligning with IBIT’s existing cap. IBIT’s separate request to increase its limit to 1,000,000 contracts remains unapproved.

Terms & Concepts
  • Options Position Limits: The maximum number of options contracts an investor or entity can hold in a given security to mitigate manipulation and concentration risk.
  • ETF (Exchange-Traded Fund): A fund that trades on an exchange and provides exposure to a basket or single asset, such as Bitcoin, without direct ownership of the underlying.
  • IBIT (iShares Bitcoin Trust): BlackRock’s spot Bitcoin ETF, whose options currently have a 250,000-contract position limit on Nasdaq.