BroadChain has learned that on March 23, The Block reported that NYSE Arca and NYSE American submitted rule change filings to the U.S. Securities and Exchange Commission (SEC). These filings were granted an exemption from the standard 30-day waiting period, effectively removing the previous 25,000-contract position and exercise limits for spot Bitcoin and Ethereum ETF options.
This change will bring crypto ETF options under the same regulatory framework as other commodity-based ETF options. Under the new rules, position limits for these options will be dynamically adjusted based on trading volume and float size. This will allow certain highly liquid products to increase their limits to over 250,000 contracts and will also permit FLEX option trading.