Key notes
- Nasdaq wants the US SEC to remove restrictions on exercise limits on options trading on crypto ETFs.
- BlackRock’s IBIT and ETHA will be positively impacted, among other funds.
- The institutional bet on crypto is increasing, with Strategy expanding its BTC position.
Nasdaq has asked the United States Securities and Exchange Commission (SEC) to lift restrictions on several Bitcoins.
BTC
$89,135
24h volatility:
0.7%
Market capitalization:
$1.78T
Flight. 24h:
$52.38 billion
and Ethereum
ETH
$2,939
24h volatility:
1.3%
Market capitalization:
$355.18 billion
Flight. 24h:
$32.24 billion
ETFs. Specifically, it requests permission to remove the 25,000 position and exercise limit restrictions on options trading on these cryptocurrency funds in question.
Nasdaq Bitcoin and Ethereum ETF Proposal: Who Benefits?
The filing with the US SEC is dated January 21. The move, if approved by the regulator, would impact options on BlackRock’s iShare Bitcoin Trust ETF (IBIT) and its counterpart Ethereum ETF (ETHA).
The limit of Grayscale, Bitwise, Fidelity, ARK21Shares and VanEck ETF options will also increase in the long term.
Each of these crypto ETFs will be subject to standard position limits outlined in the Nasdaq Options Market Rules. This will synchronize them with other existing ETF options. To bolster its argument for removal, Nasdaq noted that the proposal promotes “fair” and “equitable” trading principles. The stock market also claimed that it prevents unfair discrimination and supports a free and open market.
This objective is achieved by ensuring consistent regulatory treatment. Additionally, it does not impose significant pressure on competition while still protecting investors. Indeed, similar changes are expected to appear on other options exchanges. Additionally, Nasdaq asked the securities agency to waive the standard 30-day deadline and make the proposal effective immediately.
In the meantime, the SEC is seeking comment, with the end of February considered the expected time frame for a decision.
BlackRock and Strategy expand their exposure to Bitcoin
Meanwhile, BlackRock increased its BTC stash, likely taking advantage of the current sell-off.
In early January, BlackRock added 9,619 Bitcoin, worth about $878 million at the time, and 46,851 Ethereum, worth $149 million, over three consecutive days. According to on-chain tracking company Lookonchain, the combined acquisition was worth approximately $1.03 billion.
In line with related institutional Bitcoin purchases, business intelligence software company Strategy purchased 22,305 BTC for approximately $2.13 billion between January 12 and 19. Following this acquisition, the company’s total holdings currently stand at 709,715 BTC.
This represents approximately 3.38% of the total supply of 21 million Bitcoin.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations aimed at driving mainstream acceptance and global integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
