Three exchange rule filings posted in the SEC library propose removing the 25,000 contract position and exercise caps that were applied to options on multiple spot Bitcoin and Ether ETFs.
The notices cover proposals from the Nasdaq Options Market in SEC Release No. 34-104649 (SR-NASDAQ-2026-002), Nasdaq ISE in SEC Release No. 34-104648 (SR-ISE-2026-01), and Nasdaq PHLX in SEC Release No. 34-104650 (SR-Phlx-2026-02).
Across the documents, the core change is consistent: options over qualifying “crypto asset” ETF trusts would be treated like other comparable ETF options for position limits, exercise limits, and related rule text.
The filings explicitly reference a set of spot Bitcoin and spot Ether ETF products that were previously singled out for 25,000 caps.
The named funds include:
The ISE and PHLX notices also discuss prior special rule text affecting FLEX-related handling for other crypto ETF options, including iShares Bitcoin Trust ETF, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust BTC, and Bitwise Bitcoin ETF, and propose removing those carve-outs as part of aligning treatment across the category.
Position limits and exercise limits are market-structure guardrails. They constrain how large a single participant’s options exposure can get, with the goal of reducing manipulation risk and stress around settlement and deliverability.
Removing the fixed 25,000 caps does not imply “no limits.” Instead, it shifts these crypto ETF options into the exchanges’ standard position limit frameworks, which typically scale based on liquidity, float, and trading activity and can be higher than 25,000 for widely traded products.
The ISE and PHLX filings also expand the “treated like other options” framing into FLEX handling for the products cited, meaning the remaining special-case language that restricted FLEX treatment is proposed to be removed so the crypto ETF options category follows the default rulebook approach.
Lifting the 25,000 caps can matter more for institutions than for retail.
There is a tradeoff to watch. More capacity can also amplify reflexive behavior during fast markets, especially if large hedges are adjusted aggressively into volatility.
The SEC notices state the proposals are filed as immediately effective rule changes under the Exchange Act pathway used for non-controversial changes, and each notice includes language that the SEC waives the standard 30-day operative delay and designates the proposals operative upon filing.
At the same time, the notices also outline that the SEC can temporarily suspend the rule change within a set window and seek further proceedings, and each notice solicits public comments with a deadline tied to Federal Register publication.
The SEC-posted filings from the Nasdaq Options Market, Nasdaq ISE, and Nasdaq PHLX target a clear market-structure objective: remove the hard-coded 25,000 position and exercise caps for options on several spot Bitcoin and Ether ETFs and align treatment with the exchanges’ broader options frameworks.
If implemented cleanly across venues, the biggest impact is likely to be institutional: more hedging capacity, potentially deeper liquidity, and a more mature volatility surface for crypto-linked ETF options, with the usual operational watchpoints around concentration, margin, and fast-market behavior.
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