NYSE Arca, American eliminate position limits for crypto ETF options

NYSE Arca and NYSE American have filed a rule change with the U.S. Securities and Exchange Commission (SEC) to eliminate the 25,000-contract position and exercise limits on spot Bitcoin and Ethereum ETF options, The Block reported. The SEC waived the standard 30-day waiting period, making the measure effective immediately upon filing. Restrictions on trading FLEX options, which allow for non-standard strike prices and expiration dates, were also lifted. Going forward, position limits for these ETF options will be calculated based on trading volume and the number of shares outstanding, according to each exchange's general rules. For large, highly liquid ETFs, this could allow for positions of over 250,000 contracts.