Key Developments in Bitcoin ETF Options
Nasdaq ISE has proposed a substantial increase in the options open interest cap for BlackRock's Bitcoin spot ETF, IBIT. The proposed change would raise the cap from 250,000 to 1 million contracts, a significant expansion from the previous limit of 25,000 contracts set in July 2025. This adjustment is a direct response to the surging institutional demand for IBIT options.
If the U.S. Securities and Exchange Commission (SEC) approves this proposal, the potential hedging capacity for IBIT options could increase dramatically. Currently, the limit translates to approximately $125 million in hedging capacity. The proposed 1 million contract cap could expand this capacity to over $1 billion, reflecting Bitcoin's growing recognition as a "core macro asset" comparable to ETFs holding global systemic assets.
Expert Perspectives on the Proposal
The proposal has garnered attention from prominent figures in the financial and crypto space. Arthur Hayes, former CEO of BitMEX, has stated that this initiative clearly demonstrates Bitcoin's established status as a macro asset. Raoul Pal, CEO of Real Vision, has also commented on the development, emphasizing how increased option limits empower institutional investors in their risk management strategies and open up new avenues for investment opportunities.
The Exchange has observed an ongoing increase in demand in options on IBIT in 2025. The Exchange believes the current position limit and exercise limit are constraining the ability of market participants to fully utilize the IBIT options market, particularly for large institutional investors. — Federal Register, November 26, 2025
Market Impact and Regulatory Context
This proposed increase aligns with historical precedents for other major ETFs. For instance, the iShares MSCI Emerging Markets ETF previously saw its limit rise to 1 million contracts. This sets a precedent for Bitcoin's elevated positioning as a macro asset and highlights its increasing hedging potential within the financial markets.
As of November 26, 2025, Bitcoin (BTC) was trading at $87,609.66, with a market capitalization of $1.75 trillion. Bitcoin held a dominant 58.01% of the overall market share. Despite recent price fluctuations, Bitcoin recorded a modest 0.73% increase over the preceding 24 hours.
The research team at Coincu anticipates that increased institutional activity, spurred by the potential cap adjustment, could contribute to greater crypto market liquidity and enhanced stability over time. An elevated hedging capacity may also encourage further regulatory advancements in the frameworks governing Bitcoin trading and investment.
"The Exchange has observed an ongoing increase in demand in options on IBIT in 2025. The Exchange believes the current position limit and exercise limit are constraining the ability of market participants to fully utilize the IBIT options market, particularly for large institutional investors." — Federal Register, November 26, 2025