US exchanges lift trading limits on Bitcoin ETF options overnight

Major US options exchanges have removed trading limits on crypto ETF options. The change applies to 11 funds, including products from BlackRock, Fidelity, and ARK 21Shares. Regulators approved the move without the usual 30-day waiting period.

NYSE Arca and NYSE American led the shift by scrapping the 25,000-contract cap on crypto ETF options. This follows similar decisions by every other major US options exchange. The changes took effect immediately after the SEC waived its standard review period.

The affected funds include BlackRock's IBIT, Fidelity's FBTC, and offerings from ARK 21Shares, Grayscale, and Bitwise. Traders can now structure these options as FLEX contracts, allowing customisable terms. No details have emerged about the asset managers behind the original ETF launches.

The removal of position limits expands flexibility for investors trading crypto ETF options. All major exchanges have adopted the change, enabling larger and more tailored positions. The SEC's quick approval signals a faster regulatory approach for certain crypto-related updates.