The Nasdaq ISE options exchange has filed a proposal with the U.S. Securities and Exchange Commission (SEC) that would move options on BlackRock’s Bitcoin (BTC) ETF, iShares Bitcoin Trust (IBIT), into the same regulatory class as the largest and most liquid stocks on the planet.
According to a notice published in the Federal Register, the changes will increase position and exercise limits from the current 250,000 contracts per side to 1 million contracts.
If the proposal is approved, BlackRock’s Bitcoin ETF will join a select “club” where reference assets are managed. This includes funds that track the world stock indexes EEM and FXI.
According to the exchange, BlackRock ETF showed ‘strong and accelerated’ growth This limits market makers and institutional desks that use derivatives for hedging and performance strategies.
In fact, IBIT has shown continued growth this year. One example is the net assets managed by the fund. The amount has already reached USD 69.88 billion.
As you can see in the graph below for SosoValue, daily net flows frequently maintain peaks, with recent revenues of US$42.8 million.
The Nasdaq ISE application includes an analysis that compares IBIT’s capitalization, liquidity, and average daily volume to ETFs that already have a 1 million contract limit.
The exchange claims that even if the position is fully exercised, it would represent just 7.5% of IBIT float and 0.284% of all Bitcoin outstanding, a level considered manageable.
For Bitcoin enthusiast Adam Livingston, This move is “incredibly bullish for Bitcoin.” That’s because Nasdaq places IBIT in the “same regulatory class as Apple, Nvidia, and Microsoft.”
In his opinion, this step signals a transition to a phase dominated by derivatives. It means that the market treats Bitcoin as a huge global asset.
The SEC began a public comment period before deciding on the requested changes.