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SEC delays review of Bitcoin options position limit proposal, plans to relax to one million contracts
【Blockchain Rhythm】The options market for Bitcoin spot ETFs has seen new developments. On January 8th, the U.S. Securities and Exchange Commission (SEC) announced an extension of the review period, allowing more time for the rule change proposal submitted by Nasdaq ISE. What is the core content of this proposal? Simply put, it aims to significantly increase the position and exercise limits for iShares Bitcoin Trust (IBIT) options from the current 250,000 contracts to 1,000,000 contracts — a fourfold increase.
Why is the SEC delaying? The official reason is to thoroughly assess the potential market impact of such a substantial relaxation of limits. In plain terms, it’s to ensure sufficient market liquidity while also preventing potential risks. The deadline for the decision has been pushed to February 24, 2026, indicating that the SEC remains quite cautious about this matter.
What does this mean for the market? Once the restrictions are relaxed, the trading depth and flexibility of Bitcoin options will be greatly enhanced, providing more operational space for institutional investors and large traders. In the long term, this will benefit the further maturity of the Bitcoin spot ETF ecosystem.