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SEC Lets NYSE Arca Quadruple IBIT Options Cap to 1 Million Contracts

Exchanges say the higher limit will let market makers hedge larger positions, reducing the need for traders to split orders.

Overview

  • The SEC made NYSE Arca’s filing effective immediately and is still accepting public comment on the change.
  • The rule raises position and exercise limits for options linked to the iShares Bitcoin Trust from 250,000 to 1,000,000 contracts.
  • NYSE Arca said rising trading in IBIT options prompted the move and that a bigger cap will help market makers manage inventory and hedges.
  • The change only applies to regulated options listed on NYSE Arca and does not alter trading rules for tokenized securities.
  • The approval comes as BlackRock reported 31% year-over-year revenue growth for fiscal Q2 2026, boosted its buyback target to $550 million, and IBIT has recorded recent investor inflows.