NYSE Removes Position Limit on Crypto ETF Options, Expanding Trading Flexibility

The removal of the 25,000-contract position limit on options tied to 11 major Bitcoin and Ether ETFs has been implemented by NYSE Arca and NYSE American exchanges. This change expands trading flexibility for institutional players and aligns crypto ETF contracts with broader options markets.

According to regulatory filings, both exchanges submitted proposed rule changes in March 2026, which were approved without a 30-day delay by the SEC. The regulator determined that the new framework for crypto ETF options is consistent with existing rules and does not introduce new regulatory concerns or risks to investors.

The updated framework allows FLEX options access for market participants, enabling them to customize key terms such as strike prices, expiration dates, and exercise styles. This move is expected to support liquidity, hedging activity, and more efficient risk management for sophisticated traders active in digital asset markets.