The U.S. Securities and Exchange Commission has approved NYSE Arca’s proposal to raise the options position limit for BlackRock’s iShares Bitcoin Trust from 250,000 contracts to 1 million. The change takes effect immediately, even as the agency continues to collect public comments on the filing.

The decision expands the size of positions traders can hold in options tied to IBIT, the largest spot Bitcoin ETF by assets. It comes as institutional use of U.S. spot Bitcoin ETFs continues to build and as IBIT has remained among the stronger products in the category in recent months.

A fourfold increase in the cap

The SEC said the proposal was filed under Section 19(b)(1) of the Securities Exchange Act and Rule 19b-4. Under the order, NYSE Arca can raise the position limit on IBIT options from 250,000 to 1 million contracts, a fourfold increase from the previous ceiling.

Although the approval is effective right away, the regulator has not closed the process. The SEC said it will keep seeking public feedback before reaching a final conclusion on the proposal.

NYSE Arca’s case for the higher limit

In its filing, NYSE Arca argued that the old 250,000-contract limit no longer reflected actual trading activity in IBIT options. The exchange said a higher cap is better aligned with current demand and should help improve market liquidity.

NYSE Arca also said the larger limit would give market makers more room to hedge positions and manage inventory efficiently. For larger participants, the exchange argued, the increase should reduce the need to split trades or strategies because of exchange-imposed position caps.

Alignment with other options venues

The exchange said the revised limit is in line with comparable changes already recognized for rival venues, including Nasdaq ISE, Nasdaq PHLX, and BOX Exchange. Bringing NYSE Arca into line with those markets, it argued, would create a more consistent framework for participants trading the same product across exchanges.

The approval applies specifically to regulated options listed on NYSE Arca. It does not change the rules for tokenized securities or other blockchain-based forms of market access.

Broader backdrop for BlackRock and IBIT

The SEC’s decision arrived shortly after BlackRock reported fiscal second-quarter 2026 results. The asset manager said revenue rose 31% from a year earlier and announced plans to increase its quarterly share repurchase target to $550 million.

IBIT has also stayed in focus because of strong investor inflows over the past week, reinforcing its standing among the largest U.S. spot Bitcoin exchange-traded funds. Separately, BlackRock earlier this week joined a Depository Trust & Clearing Corporation tokenization pilot with JPMorgan Chase and Goldman Sachs to explore blockchain-based settlement for stocks and U.S. Treasuries.

What comes next

For now, the practical effect is immediate: traders on NYSE Arca can access much larger options positions tied to IBIT than before. The remaining confirmed step is the SEC’s continued review of public comments before it reaches a final conclusion on the filing.

That means the market has clarity on the new operating limit, while the formal rulemaking process is still open.

Source: crypto.news