Nasdaq Requests to Raise Trading Limit for Options on BlackRock’s Bitcoin ETF to 1 Million

Leading U.S. exchange Nasdaq is pushing for major expansion of trading capacity for options linked to BlackRock’s iShares Bitcoin Trust (IBIT). 

According to a Wednesday filing with the SEC, Nasdaq asked regulators to raise IBIT’s current daily options trading limit from 250,000 contracts to 1 million. It cited rapidly expanding investor demand. 

The exchange noted that the proposed ceiling is consistent with existing limits of several other BlackRock-owned ETFs. These include the iShares MSCI EAFE, iShares MSCI Emerging Markets, and iShares China Large-Cap funds.

Initial Increment 

Notably, this marks Nasdaq’s second attempt to expand trading capacity for IBIT options. The first request came in January, shortly after the SEC approved options trading for the Bitcoin ETF.

At the time, Nasdaq sought to raise the cap tenfold—from 25,000 contracts to the current 250,000. The SEC granted that increase in July 2025. 

With activity accelerating far beyond initial expectations, Nasdaq argues that the current limit is no longer sufficient. Accordingly, it now seeks approval to raise the ceiling to 1 million contracts. 

IBIT Dominance in the Bitcoin ETF Market 

The iShares Bitcoin Trust has firmly established itself as the dominant force in the regulated Bitcoin derivatives market. With roughly $70 billion in assets, IBIT is not only the largest Bitcoin ETF but also the primary driver of nearly all Bitcoin ETF options activity.

At its peak in October, open interest in IBIT options surged past $50 billion, reaching levels comparable to the world’s largest crypto options exchange, Deribit. According to data compiled by Bloomberg, IBIT options account for 98% of the overall Bitcoin ETF options and 96% of the total open interest across these products. 

Institutional Demand for IBIT Soars 

Indeed, IBIT has become the preferred vehicle for institutions seeking Bitcoin exposure through traditional financial products. That momentum was reinforced this week when JPMorgan filed to issue structured notes linked to IBIT. Interestingly, analysts argue the move could encourage other issuers to follow suit.

IBIT currently holds roughly $70 billion in net assets. The fund had previously surpassed the $100 billion mark earlier this year. However, the sharp decline in Bitcoin’s price and persistent outflows reported in recent weeks have since reduced the net value of BlackRock’s BTC holdings.

Meanwhile, the outflow trend has shifted over the past two days. Specifically, IBIT attracted $125.8 million in inflows, pushing net inflows to $62.68 billion. As of November 26, IBIT has 1.37 billion outstanding shares and a 30-day average trading volume of $73.78 billion.