Nasdaq seeks to ‘super-size’ option limits for BlackRock's Bitcoin ETF

The Nasdaq International Securities Exchange has filed a connection with the US Securities and Exchange Commission (SEC) to summation the presumption limits for options connected BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded money to 1 million.  

Position limits beryllium to forestall immoderate 1 capitalist from controlling excessively galore enactment contracts connected the aforesaid stock, thereby reducing the hazard of manipulative schemes that could impact prices, according to the announcement and transcript of the filing from the SEC connected Wednesday.   

The Nasdaq has requested successful its filing, which it sent connected Nov. 13, to summation the BlackRock ETF limit from 250,000 contracts to 1 million, arsenic the speech has seen an ongoing increase successful request for IBIT, and the little bounds volition impede trading enactment and the strategies of investors, specified arsenic the usage of effectual hedging vehicles oregon an income-generating strategy. 

Source: Eric Balchunas 

Speaking to Cointelegraph, Vincent Liu, the main concern serviceman astatine quantitative trading steadfast Kronos Research, said the SEC is apt to o.k. the connection due to the fact that “these adjustments are regular erstwhile an plus proves it tin grip existent volume. If approved, expect thicker bid books, tighter spreads, and a much businesslike options market.” 

“Super-sizing IBIT enactment limits is simply a consecutive triumph for liquidity, allowing bigger traders to fto existent size travel without friction. More depth, tighter spreads, and cleaner markets travel erstwhile constraints travel off.” 

Crypto derivatives conscionable organization scale

Nasdaq antecedently filed to rise the bounds from 25,000 to 250,000 successful January due to the fact that it was good supra the trading measurement minimum of 100 cardinal shares to qualify. 

Liu said this existent propulsion from the Nasdaq to “super-size IBIT enactment limits shows Bitcoin markets breaking retired of their grooming wheels.”

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“Bigger bands mean bigger players tin yet hedge, size up, and sharpen terms discovery. A wide motion that crypto derivatives are shifting from niche to necessary,” helium said. 

“Higher limits volition spark a short-term popular successful volatility. With much country to warehouse hazard and hedge cleanly, liquidity stops gapping and starts acting similar a existent organization venue with calmer books, amended fills, and travel that compounds alternatively of fragments.” 

Bitcoin ETF successful aforesaid league arsenic tech giants similar Apple and Microsoft

Meanwhile, Adam Livingston, a Bitcoin (BTC) expert and author, said successful a bid of X posts connected Wednesday that the determination by Nasdaq places BlackRock’s Bitcoin ETF into the aforesaid class arsenic the “largest, astir liquid equities connected Earth,” specified arsenic tech giants Apple and Microsoft. 

Source: Adam Livingston

“They did it due to the fact that the marketplace has already decided Bitcoin is simply a mega-cap asset, whether Washington likes it oregon not. This is the infinitesimal each banker secretly feared,” helium said. 

“This is wherever Bitcoin stops being that weird decentralized experimentation and becomes a afloat weaponized regulated plus people with institutional-grade derivatives depth. You don’t standard options by 40× unless you cognize request is astir to detonate.” 

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