Two New York Stock Exchange affiliates, NYSE Arca and NYSE American, have removed position limits on options tied to 11 crypto exchange-traded funds, expanding trading flexibility for institutional investors.
The rule changes, approved by the US Securities and Exchange Commission, eliminate the 25,000-contract cap previously imposed on options linked to Bitcoin and Ethereum ETFs. Regulators also waived the standard waiting period, allowing the changes to take effect immediately.
Originally introduced in 2024 to curb volatility and potential manipulation, the limits are now being lifted to align crypto ETF options with other commodity-based products.
The update also enables trading via FLEX options, which allow customized contract terms such as strike prices and expiration dates.
Affected funds include offerings from major asset managers like BlackRock and Fidelity Investments. The move is expected to improve liquidity and make it easier for large investors to hedge and manage crypto exposure.
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