Bitcoin News Today: Bitcoin Recognized as a Mainstream Asset as Nasdaq Lists IBIT Alongside Leading ETFs

Nasdaq Proposes Major Expansion for Bitcoin ETF Options Trading

Nasdaq’s International Securities Exchange (ISE) has put forward a proposal to dramatically increase the trading limits for options contracts tied to BlackRock’s iShares Bitcoin Trust (IBIT). This move reflects a rising level of institutional trust in Bitcoin derivatives.

The exchange aims to boost the position and exercise limits from 250,000 contracts to 1 million, bringing IBIT in line with leading exchange-traded funds such as iShares MSCI Emerging Markets (EEM) and SPDR Gold Trust (GLD). This adjustment comes as IBIT rapidly emerges as the top Bitcoin options market by open interest, outpacing competitors like Deribit. Industry observers see this as a sign of Wall Street’s growing integration of Bitcoin into mainstream financial systems, with Nasdaq treating it similarly to established commodities and equities.

Growing Institutional Demand for IBIT Options

The ISE’s submission highlights a surge in demand for IBIT options, fueled by institutional investors seeking to hedge, generate income, or speculate. The exchange notes that even if the new 1 million-contract limit were fully utilized, it would account for only 0.284% of Bitcoin’s total supply, thus posing minimal systemic risk.

Additionally, Nasdaq is proposing to remove position limits for customized FLEX options, which are popular among large funds for tailored risk management. This change would align IBIT with gold-backed ETFs like GLD, which already benefit from unlimited FLEX options. Market analysts, including Eric Balchunas of Bloomberg and Jeff Park of Bitwise Asset Management, have welcomed the proposal, noting that the previous cap was restrictive and that the increase better accommodates the needs of institutional investors.

IBIT’s Growing Influence in the Bitcoin Derivatives Market

BlackRock’s IBIT has established itself as a key player in the regulated Bitcoin derivatives space, managing $86.2 billion in assets and averaging over 44.6 million shares traded daily. Its dominance has been further cemented by recent innovations, such as JPMorgan’s introduction of a structured note linked to IBIT. This product, designed around Bitcoin’s halving cycle, offers investors either leveraged exposure or guaranteed returns based on price performance. These developments highlight Bitcoin’s evolution into a mainstream macro asset, attracting institutional capital that previously avoided direct involvement in cryptocurrency markets.

Regulatory Progress and Market Impact

Nasdaq’s proposal also marks a step forward in the development of U.S. regulations for digital assets. By treating IBIT similarly to other established ETFs, the exchange is helping to legitimize Bitcoin as an investment option. The Securities and Exchange Commission (SEC) is currently reviewing the proposal, with a public comment period open until December 17, 2025. If approved, the changes could unlock additional liquidity and strengthen market infrastructure, potentially accelerating Bitcoin adoption among major institutional investors such as pension funds and hedge funds.

Broader Implications for the Financial Sector

The impact of these changes extends beyond Nasdaq and BlackRock. As regulated Bitcoin derivatives become more widely adopted, they offer transparent alternatives to less regulated over-the-counter markets, improving risk management and transparency for institutional players. This evolution is crucial for expanding Bitcoin’s role in global finance, especially as market cycles and halving events contribute to volatility. With IBIT now at the forefront of both spot and derivatives trading, its continued success could drive further innovation in Bitcoin-related financial products, including structured notes and yield-generating strategies.