TechFlow News, March 23: According to a Cointelegraph report, NYSE Arca and NYSE American—both subsidiaries of the New York Stock Exchange—have officially removed the 25,000-contract position limit on options tied to 11 cryptocurrency exchange-traded funds (ETFs). The rule change has received an exemption from the U.S. Securities and Exchange Commission’s (SEC) standard 30-day waiting period and takes effect immediately.
The affected ETFs include BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), ARK 21Shares Bitcoin ETF (ARKB), and bitcoin and ether ETFs offered by Bitwise and Grayscale.
The position limits were initially introduced in November 2024 upon the launch of cryptocurrency ETF options trading, aimed at preventing market manipulation and excessive volatility. With their removal, regulatory treatment of these options will now align more closely with that of other commodity ETF options, enhancing institutional investors’ trading flexibility and potentially improving market liquidity.
