3 Minutes
Nasdaq ISE moves to expand IBIT Bitcoin options trading
What Nasdaq is asking the SEC
Nasdaq's International Securities Exchange (ISE) has filed to increase the trading cap on options tied to BlackRock's iShares Bitcoin Trust ETF (IBIT) from 250,000 contracts to 1,000,000 contracts. The exchange calls the change necessary to meet surging institutional demand and to support complex hedging and market-making strategies tied to the IBIT ETF.
Context: Options growth and open interest
IBIT options have climbed rapidly since launch, with reported open interest surging to roughly $50 billion at peak. That rise has coincided with strong growth across crypto derivatives markets, where demand for regulated Bitcoin options has become notable among asset managers and institutional traders.
How IBIT stacks up against Deribit
Deribit remains the dominant crypto options exchange by volume and open interest. In late 2025, Deribit recorded a new BTC options open interest record near $50.27 billion and roughly 453,820 active BTC contracts. The exchange also posted dramatic year-on-year volume growth in 2024. Despite Deribit's leadership, Bloomberg reports IBIT-related options now represent the vast majority of Bitcoin ETF options activity, highlighting a shift toward regulated venues.
Regulatory review and market implications
The U.S. Securities and Exchange Commission (SEC) is currently reviewing Nasdaq ISE's request. If approved, the increase to a 1 million contract cap would enable more expansive institutional strategies and could make IBIT options a larger, more liquid alternative to offshore venues. Market participants are watching closely because higher caps can amplify liquidity but also concentrate risk around a single ETF product.
What traders should watch
Key metrics to monitor include options open interest, volume across regulated ETFs, and shifting market share between exchanges like Deribit and U.S.-regulated platforms. Investors interested in Bitcoin derivatives should factor in regulatory outcomes, potential changes to market depth, and how increased ETF options capacity might affect hedging costs and implied volatility for Bitcoin.
As demand for Bitcoin options continues to accelerate, the decision by the SEC will influence whether regulated ETF-linked options can scale to meet institutional needs while maintaining orderly markets.
Source: crypto
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