SEC approves unlimited Bitcoin and Ether ETF options

U.S. exchanges removed the 25,000-contract cap on Bitcoin and Ether ETF options after SEC approval. Limits now depend on liquidity, and FLEX options are expanded, boosting flexibility and trading.

Major U.S. options exchanges, including NYSE Arca, NYSE American, Nasdaq, ISE/BX, and BOX, have eliminated the 25,000-contract position and exercise limits on options tied to 11 spot Bitcoin and Ether ETFs. The Securities and Exchange Commission (SEC) expedited the approval process by waiving the standard 30-day waiting period, making these changes effective immediately. Position limits will now be determined by liquidity and trading volume, potentially allowing positions to exceed 250,000 contracts in highly liquid ETFs. The rule changes also expand the use of FLEX options, enabling customized strike prices and expiration dates for greater flexibility. These updates align crypto ETF options with traditional commodity ETF options, offering enhanced flexibility for institutional and retail investors. The changes are expected to support more sophisticated trading strategies and contribute to the overall maturity of the market.