Bullish Shift as SEC Allows Nasdaq Bitcoin ETF Options to Operate at Scale

Nasdaq has cleared the way for significantly expanded trading in bitcoin and ethereum-linked options after a fast-tracked SEC greenlight removed long-standing contract limits on major crypto ETFs.

SEC Steps Aside as Nasdaq Expands Crypto ETF Options — A Bullish Setup for Traders

The U.S. Securities and Exchange Commission (SEC) published a notice on Jan. 21 regarding the filing and immediate effectiveness of a proposed rule change by The Nasdaq Stock Market LLC to remove restrictions on certain crypto assets.

The SEC notice relates to a rule filing Nasdaq submitted on Jan. 7 seeking to amend position and exercise limit provisions under Options 9, Sections 13 and 15 of the Nasdaq Options Market rules. The notice details the removal of the existing 25,000-contract position and exercise limits for options overlying specific exchange-traded fund (ETF) shares linked to bitcoin and ethereum.

The notice explains that the proposed rule change qualified for immediate effectiveness under applicable Commission standards, including findings related to investor protection, competition, and timing requirements. Based on that determination, the SEC concluded:

“The proposed rule change has become effective.”

The affected products named in the filing include the Fidelity Wise Origin Bitcoin Fund, Blackrock’s Ishares Bitcoin Trust ETF, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust BTC, the Bitwise Bitcoin ETF, the ARK21Shares Bitcoin ETF, the Vaneck Bitcoin ETF, Blackrock’s Ishares Ethereum Trust ETF, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.

Read more: $100K Bitcoin Setup Strengthens as Macro Data Clears the Way

In its discussion of Commission action, the notice explains that Nasdaq requested a waiver of the standard 30-day operative delay so the rule change could take effect immediately. The exchange argued that accelerated implementation would allow the affected crypto-related options to be treated in the same manner as other qualifying commodity-based trust options and would not raise new regulatory concerns. After reviewing the request, the Commission determined that waiving the delay was consistent with investor protection and the public interest, and therefore designated the proposal operative upon filing. The notice states:

“The Commission hereby waives the 30-day operative delay and designates the proposal operative upon filing.”

At the same time, the notice clarifies that the Commission retains oversight authority following the rule’s effectiveness. It explains that the SEC may temporarily suspend the rule change within 60 days of filing if it determines such action is necessary in the public interest, for the protection of investors, or to further the purposes of the Securities Exchange Act, and would institute proceedings to determine whether the proposal should be approved or disapproved. The notice also states that the Commission is soliciting public comments and invites interested persons to submit written data, views, and arguments on the proposed rule change, even though it is already operative.

FAQ ⏰

• What did the SEC approve for Nasdaq crypto options?

The SEC allowed Nasdaq to immediately remove position and see exercise limits on bitcoin and ethereum ETF options.

• Which crypto ETFs are affected by the Nasdaq rule change?

The change applies to bitcoin and ethereum ETFs from Fidelity, Blackrock, Grayscale, Bitwise, Ark21Shares, and Vaneck.

• Why did the SEC waive the 30-day waiting period?

The Commission determined the rule change did not harm investors, competition, or market integrity.

• Can the SEC still reverse the Nasdaq crypto options rule?

Yes, the SEC retains authority to suspend the rule within 60 days if concerns arise.