SEC don hike Bitcoin ETF options limit, approve in-kind creation
For August 4, 2025, SEC raise single-contract position limit for option-enabled Bitcoin ETFs from 25,000 go 250,000 contracts. Dis change na apply to BlackRock’s iShares Bitcoin Trust ETF (IBIT) but e no include Fidelity’s Wise Origin Bitcoin Fund (FBTC). Dis ten times increase go allow IBIT to run covered call and other advanced option strategies. Research head Greg Cipolaro for NYDIG talk say dis kind tactics fit reduce Bitcoin wahala for price change, make Bitcoin ETF fine for institutional investors, and increase spot demand.
SEC also approve in-kind creation and redemption for crypto ETFs. Authorized participants fit swap real coins instead of cash. As e be now, only Jane Street and Virtu get the crypto infrastructure wey dem need. Other fit need partner or buy to fit compete. Traders suppose expect better arbitrage, deeper liquidity, and more option wahala for Bitcoin ETF market.
Overall, dis regulatory moves show say ETF space dey mature. Higher option limits and in-kind methods go support lower price wahala, strong institutional flow, and better outlook for Bitcoin trading.
Bullish
To raise di Bitcoin ETF options limit ten times and approve in-kind creation dey reduce di wahala for price change (volatility) and e make e easier for big big companies to enter market. For short time, traders fit expect more options activity, close up spread and better arbitrage. For long time, less wahala for price changing and easy creation/redemption process go help steady flow of big company money come in. All dis things join for give better hope for Bitcoin.