Crypto ETF Options Gain More Trading Freedom

The Securities and Exchange Commission has granted NYSE Arca and NYSE American exemptions from standard review periods, allowing them to remove position limits on crypto ETF options. This move aligns the two exchanges with their peers, completing the transition to a more open market for institutional investors.

According to sources, the rule changes cover options on 11 crypto ETF products, including BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund. The restrictions that previously prevented these products from trading as FLEX options have also been lifted.

FLEX options allow for customizable strike prices and expiration dates, providing institutional investors with more flexibility in managing risk. Position limits will now follow each exchange's standard framework, based on trading volume and shares outstanding. This change is expected to increase trading efficiency and provide better risk management tools for large allocators.