TechFlow reports that on July 15, the U.S. Securities and Exchange Commission (SEC) approved the rule change application submitted by NYSE American, significantly increasing the option position and exercise limit for BlackRock's spot Bitcoin ETF IBIT from 250,000 contracts to 1 million contracts, effective immediately.
Previously, Nasdaq ISE, Nasdaq PHLX, and BOX exchanges have successively approved similar proposals. NYSE American pointed out in the application that the current 250,000 contract limit has constrained institutional investors' hedging and yield strategies, while also limiting market makers' ability to provide liquidity. Increasing the limit helps compete with the over-the-counter market and provides institutional investors with more effective risk management tools.
