Nasdaq has filed a proposal with the SEC seeking approval to remove restrictions on Bitcoin and Ethereum ETF options, a move that could reshape the derivatives landscape for digital assets. The exchange is asking for the rule change to take effect immediately, bypassing the standard 30‑day delay.
Currently, crypto ETF options face a cap of 25,000 contracts, a limit Nasdaq argues is outdated. The proposal would align crypto ETF options with equity and commodity ETF rules, treating them like any other ETF product. The change would directly impact funds such as BlackRock’s IBIT and ETHA, alongside offerings from Grayscale, Bitwise, Fidelity, ARK 21Shares, and VanEck.
SEC Review
The SEC has opened the proposal to public comments, with a decision expected by the end of February. The review also covers Nasdaq Bitcoin Index options, reflecting growing demand for crypto derivatives. IBIT options already rank 11th in U.S. open interest, with 5.3 million contracts outstanding — evidence of strong institutional activity. Still, IBIT options remain less popular than gold and silver ETFs, signaling investor caution in the face of crypto volatility.
Market Trends: Spotlight on Ethereum
While Bitcoin ETFs dominate headlines, Ethereum’s role is increasingly critical. Spot Bitcoin ETFs saw $1.58 billion in outflows this month, led by IBIT ($356.6M) and Fidelity’s FBTC ($287.7M). In contrast, Ethereum is trading near $2,944, rebounding about 1% after an 11% weekly drop. The pullback highlights investor risk reduction amid market uncertainty, but ETH’s recovery suggests resilience.
If Nasdaq’s proposal is approved, Ethereum ETF options could see expanded participation, offering traders deeper liquidity and more sophisticated hedging tools. For institutions, the ability to scale beyond current limits may accelerate Ethereum’s integration into mainstream financial strategies.
