NYSE Arca Proposes Rule Changes to Align Position Limits and FLEX Options Trading for Bitcoin and Ethereum ETFs
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NYSE Arca is amending its rules to remove the special 25,000-contract position and exercise limits that applied to options on several spot Bitcoin and Ethereum ETFs. The affected products include Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF, and multiple Ethereum equivalents. These options will now follow standard position limits under Rule 6.8-O Commentary .06 and corresponding exercise limits. The Exchange is also removing restrictions that prevented most of these crypto asset ETFs from trading as FLEX Equity Options. The changes treat these Crypto Assets the same as other equity options listed under the generic Commodity-Based Trust criteria in Rule 5.3-O(g)(x). This filing mirrors similar proposals already submitted by Nasdaq ISE, MIAX, and Nasdaq PHLX.
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Key Changes
- Removes 25,000 contract position and exercise limit for Fidelity Wise Origin Bitcoin Fund, ARK21Shares Bitcoin ETF and all listed Ethereum ETF options
- Eliminates special aggregation requirements for FLEX GBTC, BTC, BITB and IBIT options in Rule 5.35-O(b)(iv)
- Removes restrictive text from Rule 5.32-O(f)(1) to allow all Crypto Assets to trade as FLEX Equity Options
+ 3 more changes with Pro