The SEC eliminated the standard 30-day waiting period, as it took effect immediately upon filing.
At this point, with this move, Bitcoin ETF options will be subject to the same regulations as general commodity ETFs, making it possible to create positions consisting of 250,000 or more contracts.
The rule change covers options for 11 cryptocurrency ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), $ARK 21Shares Bitcoin ETF (ARKB), Grayscale’s Bitcoin and Ethereum funds, and Bitwise’s Bitcoin and Ethereum ETFs.
These ETFs can also now be traded as FLEX options, offering customized strike prices and expiration dates. Trading restrictions on FLEX options, which allow for non-standard strike prices and expiration dates, have also been removed. From now on, institutional investors can also use FLEX options, allowing them to freely determine strike prices and expiration dates.
From now on, position limits for these ETF options will be calculated according to the general rules of each exchange, based on trading volume and the number of shares outstanding. For large and highly liquid ETFs, this might allow positions of more than 250,000 contracts.
Nasdaq ISE and Nasdaq PHLX applied to remove restrictions in January. MIAX also applied in January, and MEMX in February. Cboe applied in March. Finally, with the addition of NYSE Arca and NYSE American, all major options exchanges in the US have removed the option limit on ETFs.
*This is not investment advice.