NYSE exchanges complete industry-wide removal of crypto ETF options caps

NYSE Arca and NYSE American have finalized the industry-wide removal of the 25,000-contract position and exercise limits on options overlying spot bitcoin and ether exchange-traded funds (ETFs). The SEC approved these changes immediately upon filing, waiving the standard 30-day waiting period. This move affects options on 11 crypto ETFs, including those from BlackRock, Fidelity, and Grayscale, and also permits these products to trade as FLEX options with customizable terms. Position limits will now default to each exchange's standard framework, potentially allowing limits of 250,000 contracts or more for large, liquid ETFs. The original cap was a conservative measure implemented when crypto ETF options trading began in November 2024. With the NYSE exchanges completing this transition, every major U.S. options exchange has now lifted these restrictions, which is expected to facilitate more efficient hedging and structured products for institutional participants, aligning crypto ETF options with those for commodity ETFs like GLD and SLV.

(Source：The Block)