Two major U.S. exchanges have quietly reshaped the trading landscape for crypto-linked derivatives. NYSE Arca and NYSE American have removed the long-standing 25,000-contract position and exercise limit on options tied to a group of spot Bitcoin and Ether exchange-traded funds (ETFs), opening the door to larger and more flexible trades.
Rule changes take effect immediately after SEC clearance
Both exchanges submitted their proposals on March 10, 2026, seeking to align crypto ETF options with the broader framework used for traditional ETF options. The filings were approved under Rule 19b-4(f)(6), allowing them to bypass the usual 30-day waiting period.
The U.S. Securities and Exchange Commission (SEC) granted a waiver, noting that the changes did not introduce new regulatory concerns and were consistent with existing market structures. As a result, the updated rules became effective immediately upon filing.
Regulatory notices published in the Federal Register confirmed that the SEC viewed the move as aligned with investor protection and the public interest, effectively fast-tracking broader access to these instruments.
Broader coverage and FLEX options expansion
The revised rules apply to 11 crypto ETF options, including products from major asset managers such as BlackRock, Fidelity, Grayscale, Bitwise, and ARK 21Shares. These funds, which previously operated under stricter limits during their early trading phases, will now follow the same position-limit structure as other widely traded ETF options.
In addition to removing caps, the exchanges have enabled these contracts to trade as FLEX options. This allows investors to customize key terms such as strike prices and expiration dates, providing more sophisticated strategies for institutional participants.
The update builds on earlier adjustments that had already eased limits for a smaller subset of Bitcoin ETF options. With the latest expansion, all covered crypto ETF options now receive similar treatment. Meanwhile, competition continues to evolve. A separate proposal from Nasdaq ISE aims to raise position limits for options on BlackRock’s iShares Bitcoin Trust to 1 million contracts, though that request is still under SEC review. “The proposed in-kind transfer process will be an alternative to the Trust’s current cash creation and redemption process,” Nasdaq wrote in the document.
The changes signal a broader shift toward integrating crypto-linked financial products into mainstream derivatives markets, giving traders more room to scale positions and refine strategies.
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