NYSE Removes Crypto ETF Options Limits for Bitcoin and Ether Funds

Two exchanges affiliated with the New York Stock Exchange have removed the 25,000-contract position cap on options tied to 11 Bitcoin and Ether exchange-traded funds. NYSE Arca and NYSE American filed multiple rule changes on March 10, which were later acknowledged by the U.S. Securities and Exchange Commission. The regulator waived the usual 30-day waiting period, allowing the changes to take effect immediately.

Crypto ETF Options Gain Flexibility Through FLEX Contracts

The removal of position limits brings crypto ETF options more in line with commodity-based funds and gives institutions broader trading flexibility. The updated framework also allows these products to be traded as FLEX options, enabling customized strike prices, expiration dates, and exercise terms. Analysts expect this flexibility to improve liquidity and make it easier for investors to manage large positions.

Eleven Bitcoin and Ether ETFs Affected by Policy Shift

A total of 11 crypto ETF options are impacted, including products such as BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Investments’s Wise Origin Bitcoin Fund (FBTC), and ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB). Additional Bitcoin and Ether ETFs from Bitwise Asset Management and Grayscale Investments are also included in the updated rules.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.