Key facts
- The US SEC approved an increase in the options contract limit for BlackRock's Bitcoin ETF (IBIT).
- The limit for IBIT options contracts has been raised from 250,000 to 1 million.
- NYSE Arca submitted the proposal to accommodate increased trading volume and improve market liquidity.
- The SEC's approval is effective immediately, pending public comment.
- BlackRock recently reported a 31% year-over-year increase in revenue for its second quarter.
The U.S. Securities and Exchange Commission (SEC) has approved a significant increase in the options contract limit for BlackRock's iShares Bitcoin Trust ETF (IBIT), raising it from 250,000 to 1 million contracts. This regulatory decision, filed by NYSE Arca, aims to keep pace with the growing trading activity in IBIT options and enhance overall market liquidity and flexibility for market makers.
The SEC confirmed the effectiveness of NYSE Arca's proposal, which was submitted on July 6. The exchange argued that the higher limit would better accommodate the rapid growth in IBIT options trading. This move aligns with similar rule changes approved for other major options exchanges, signaling a broader regulatory effort to support the expanding demand for Bitcoin ETF options.
This development follows BlackRock's strong second-quarter earnings report, which showed a 31% year-over-year revenue increase. The higher options limit is expected to enable institutional investors and professional traders to execute larger strategies more efficiently, viewed as another sign of the maturing Bitcoin ETF ecosystem.