Nasdaq Seeks to Quadruple IBIT Options Position Limits, Enabling Institutional Bitcoin Derivatives

Nasdaq’s International Securities Exchange asked the SEC to raise position limits on BlackRock’s iShares Bitcoin Trust (IBIT) options from 250,000 to one million contracts, enabling dealers to hedge large institutional flows under standard Wall Street risk frameworks. The filing argues IBIT’s market capitalization and volume now qualify it for mega-cap treatment and for larger, listed FLEX block trades. Higher limits would let banks and structured-product desks build and hedge Bitcoin-linked notes and buffered products, but clearinghouse resilience and accounting rules like SAB 121 still constrain using Bitcoin as capital-efficient collateral. The change could shift price discovery toward regulated U.S. venues while creating dual-track offshore speculative flows and concentrated gamma risks.